Chapter 10 Property Dispositions
32. [LO 1] Rafael sold an asset to Jamal. What is Rafael’s amount realized on the sale in each of the following alternative scenarios? a. Rafael received $80,000 of cash and a vehicle worth $10,000. Rafael also pays $5,000 in selling expenses. b. Rafael received $80,000 of cash and was relieved of a $30,000 mortgage on the asset he sold to Jamal. Rafael also paid a commission of $5,000 on the transaction. c. Rafael received $20,000 of cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $8,000 on the transaction. a. $85,000, computed as follows: Property Received (1) Cash (2) Vehicle (3) Commissions Amount …show more content…
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Chapter 10 - Property Dispositions
36. [LO 3, 4] In year 0, Canon purchased a machine to