Assignment Detail

Assignment ID: FG133056733

Question – Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $79,000, and it has claimed $42,600 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)

Required –

a. Assuming that Hauswirth receives $54,100 in cash for the warehouse, compute the amount and character of Hauswirth’s recognized gain or loss on the sale.

b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $54,100, compute Hauswirth’s realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

c. Assuming that Hauswirth receives $35,000 in cash in year 0 and a $75,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth’s gain or loss in year 0 and in year 1.

a: Assuming that Hauswirth receives $54,100 in cash for the warehouse, compute the amount and character of Hauswirth’s recognized gain or loss on the sale.

b: Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $54,100, compute Hauswirth’s realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

c: Assuming that Hauswirth receives $35,000 in cash in year 0 and a $75,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth’s gain or loss in year 0 and in year 1.