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  3. paris company sold an asset with a $78,300 adjuste

Paris Company sold an asset with a $78,300 adjusted tax basis for $100,000. The purchaser...

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Accounting

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Paris Company sold an asset with a $78,300 adjusted tax basis for $100,000. The purchaser paic $30,000 in cash and assumed Paris's $70,000 mortgage on the asset. Compute Paris's net cash flow from the sale assuming a 35% tax rate. $22,405 $13,095 $14,105 None of the above Question 2 Janice Jones sold marketable securities with a $79,600 tax basis to her son for $60,000 cash. Two years later, the son sold the securities through their broker for $93,000. Compute the son's gain recognized on sale. $13,400 $19,600 $33,000 None of the above Sunflower Co. sold two operating assets this year. The first sale created a $38,700 Section 1231 gain, and the second sale created a $59,400 Section 1231 loss. As a result of these sales, Sunflower should recognize: $20,700 ordinary loss $38,700 Section 1231 gain treated as capital gain and $59,400 ordinary loss $20,700 capital loss None of the above

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