Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jennifer judd gives her son, jim, section 1245 pro

Jennifer Judd gives her son, Jim, Section 1245 property. The property has an adjusted basis...

90.2K

Verified Solution

Question

Accounting

Jennifer Judd gives her son, Jim, Section 1245 property. The property has an adjusted basis of $11,000 to Jennifer, who has taken $2,000 in depreciation expense. Jim uses the property for three years, takes depreciation of $3,000 and then sells it for $14,000. What amount of gain must Jennifer recognize and what amount of gain must Jim recognize?

$2,000 Section 1231 gain; $3,000 Section 1231 gain

$0; $5,000 ordinary income and $1,000 Section 1231 gain

$2,000 ordinary income; $6,000 Section 1231 gain

$0; $3,000 ordinary income and $3,000 Section 1231 gain

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the exact value of cos (7?/12)a) 1-?3/2?2b) ?3+1/?2c) ?3-1/2?2d) ?3+1/2?2

Algebra
Q

Make the block diagram (Software LabView) of two control sequence programs involving binary type signals (Digital),...

Electrical Engineering
Q

In a metre bridge the null point is found at a distance of 20 cm...

Physics
Q

Examine angles whose Prove theorems involving angles Apply involving inscribed angles G lie on a...

Geometry
Q

a b If B c 0 O a b a d O c d b...

Basic Math
Q

Find the value s of c such that the area of the region bounded by...

Calculus
Q

Determine which of A B and C are equal before evaluating two decimal places 2...

Calculus
Q

Q1. Dave Chan operates a small desert shop (with 125 ft useable floor area) and...

Accounting
Q

The independent cases are listed below includes all balance sheet accounts related to operating activities:...

Accounting
Q

please help! Enter the effects of the following...

Accounting
Q

1. 2. 3. ...

Finance
Q

The journal entry for recording cost of sales is to debit cost of sales expense...

Accounting