Sissoon Inc

question 51

Essay

Sissoon Inc.exchanged a business asset for an investment asset.Both assets had a $620,000 appraised FMV.Sissoon's book basis in the business asset was $518,900,and its tax basis was $443,400.
a.Compute Sissoon's book and tax gain if the business asset and investment asset were like-kind properties for tax purposes.
b.Determine Sissoon's book and tax basis of the investment asset acquired in the nontaxable exchange properties for tax purposes.
c.Compute Sissoon's book and tax gain if the business asset and investment asset were not like-kind properties for tax purposes.
d.Determine Sissoon's book and tax basis of the investment asset acquired in the taxable exchange.

---

Definitions:

Mortgages

Loans used to purchase a property, where the property itself serves as security against the loan.

Conditional Sale Agreement

A contract for the sale of goods where the purchase price is paid in installments and the ownership (title) of the item does not pass to the buyer until certain conditions, often the full payment, are met.

Provincial Legislation

Laws and regulations enacted by the legislative bodies of provinces or territories within a country.

Registration

The act of recording information or names officially, often for legal, official, or security purposes.