ACCT 324 Week 4 Midterm Exam Answers
ACCT 324 Week 4 Midterm Exam Answers
ACCT 324 Week 4 Midterm Exam Answers
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depreciation). Helen sold the property for $375,000, with $75,000 due on the date of the<br />
sale and $300,000 (plus interest at the federal rate) due in 2011. Helen’s recognized<br />
installment sale gain in 2011 is:<br />
24. Question : (TCO 2) Todd, a CPA, sold land for $200,000 plus a note for $400,000. The<br />
interest rate on the note was equal to the federal rate. The fair market value of the note<br />
was $360,000. Todd’s basis in the land was $75,000.<br />
25. Question : (TCO 2) Both economic and social considerations can be used to justify:<br />
26. Question : (TCO 3) Joe’s automobile, which was used only for business purposes, was<br />
damaged in an accident. At the date of the accident, the fair market value of the<br />
automobile was $13,000 and its adjusted basis was $7,000. After the accident, the<br />
automobile was appraised at $4,000. Calculate Joe’s loss. Is it a for or from AGI<br />
deduction?<br />
27. Question : (TCO 1) In 2010, David had the following transactions: