Ed owns investment land with an adjusted basis of $35,000. polly has offered to purchase the land from ed for $175,000 for use in a real estate development. the amount offered by polly is $10,000 in excess of what ed perceives as the fair market value of the land. ed would like to dispose of the land to polly but does not want to incur the tax liability that would result. he identifies an office building with a fair market value of $175,000 that he would like to acquire. polly purchases the office building and then exchanges the office building for ed’s land. a. calculate ed’s realized and recognized gain on the exchange and his basis for the office building. b. calculate polly’s realized and recognized gain on the exchange and her basis in the land. how do you determine if somethng is a recognized gain or loss?

Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1,234.00 and have not been paid yet. using actual days, how much will the buyer be credited and the seller be debited

Double corporation acquired all of the common stock of simple company for

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.