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a. Determine the amount of cost recovery that can be taken in 2009:
b. Determine the amount of cost recovery that could be taken in 2009
if the fair market value of the property were $350,000:
Chapter 7
49. Ricardo acquired a warehouse for business purposes on August 30,
1992. The building cost $200,000. He took $133,333 of depreciation on
the building, and then sold it for $350,000 on July 1, 2009. What is the
amount and nature of Ricardo’s gain or loss on the sale of the
warehouse?
51. In 2009, Juanita sold stock considered short-term for a gain of
$875 and stock considered long-term for a loss of $2,400. She also had
a $2,000 short-term loss carryover from 2008 and a $240 long-term
loss carryover from 2008.
What amount will be shown as a short-term gain (loss) for 2009?
What amount will be shown as a long-term gain (loss) for 2009?
c. Will there be a carryover to 2010? If so, what is the nature and
amount of the carryover?
Chapter 8
37. Matt and Marie own a vacation home at the beach. During the
year, they rented the house for 42 days (6 weeks) at $890 per week and
used it for personal use for 58 days. The total costs of maintaining the
home are as follows:
Mortgage interest $4,200
Property taxes 700
Insurance 1,200