ACCT 324 help A Guide to career/Snaptutorial ACCT 324 help A Guide to career/Snaptutorial | Page 18

20. (TCO 3) Several years ago, Joy acquired a passive activity. Until
2006, the activity was profitable. Joy's at-risk amount at the beginning
of 2006 was $250,000. The activity produced losses of $100,000 in
2006, $80,000 in 2007, and $90,000 in 2008. During the same period,
no passive income was recognized. How much is suspended under the
at-risk rules and the passive loss rules at the beginning of 2009?
21. (TCO 3) Vic's at-risk amount in a passive activity is $200,000 at
the beginning of the current year. His current loss from the activity is
$80,000. Vic had no passive activity income during the year. At the
end of the current year:
22. (TCO 2) The accrual basis taxpayer sold land for $100,000 on
December 31, 2009. He did NOT collect the $100,000 until January 2,
2010. The land was held as an investment.
23. (TCO 2) Hal sold land held as an investment with a fair market
value of $100,000 for $36,000 cash and a note for $64,000 that was
due in two years. The note bore interest of 11% when the applicable
federal rate was 7%. Hal's cost of the land was $40,000. Because of
the buyer's good credit record and the high interest rate on the note,
Hal thought the fair market value of the note was at least $74,000.
24. (TCO 2) Pedro, NOT a dealer, sold real property that he owned
with an adjusted basis of $60,000 and encumbered by a mortgage for
$28,000 to Pat in 2008. The terms of the sale required Pat to pay
$14,000 cash, assume the $28,000 mortgage, and give Pedro eleven
notes for $6,000 each (plus interest at the federal rate). The first note
was payable two years from the date of sale, and each succeeding note
became due at two-year intervals. Pedro did NOT elect out of the
installment method for reporting the transaction. If Pat pays the 2011
note as promised, what is the recognized gain to Pedro in 2010
(exclusive of interest)?
25. (TCO 2) Social considerations can be used to justify:
1. (TCO 3) Joe's automobile, which was used only for business
purposes, was damaged in an accident. At the date of the accident, the
fair market value of the automobile was $13,000 and its adjusted basis
was $7,000. After the accident, the automobile was appraised at
$4,000. Calculate Joe's loss. Is it a for or fromAGI deduction?
2. (TCO 1) Elaine provides more than half of the support for her son
James, who does NOT live with her. James is 26 and is a full-time