In 2005,the Force Partnership Purchased an Apartment Building for $600,000

question 93

Essay

In 2005,the Force Partnership purchased an apartment building for $600,000 and paid an additional $10,000 in acquisition fees.The partnership properly claimed $130,000 in depreciation on the building.In 2017,Force allows the building to be foreclosed by the bank for $490,000,the amount of the outstanding loan principal.What is the realized gain or loss,if any,for the partnership resulting from the foreclosure?

---

Definitions:

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.

Rights Offerings

A method by which a company raises capital by giving existing shareholders the right to buy additional shares at a discount.

Market Value

The existing market price for the acquisition or sale of an asset or service.

New Equity Offering

A financial process where a company issues new shares to the public or existing shareholders to raise capital.