Sam's Land Was Condemned for a Sewage Treatment Plant

question 27

Multiple Choice

Sam's land was condemned for a sewage treatment plant.He received $600,000 for the land that had a basis of $650,000.What is his realized and recognized gain or loss,respectively,on this involuntary conversion?

• A)($50,000), ($50,000)
• B)($50,000),0
• C)$50,000,$50,000
• D)0,0
• E)None of the above

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Definitions:

January

The first month of the year in the Gregorian calendar.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expenses expected for the actual level of production activity.

January

January is the first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads based on expected efficiency and the actual variable overheads incurred.