Examlex
Julie owns property that is treated as a capital asset in her hands. She contributed a parcel of land (basis $60,000; fair market value $58,000) to a real estate partnership, which will hold it as inventory. After three years, the partnership sells the land for $56,000. The partnership will recognize a $4,000 ordinary loss on sale of the property.
Journal Entries
The recording of financial transactions in a company's double-entry accounting system.
Bond Interest
The periodic payment made to bond investors, representing the interest earned on the bond's face value.
Amortization
The process of gradually writing off the initial cost of an asset over its useful life or the repayment of a loan over time through scheduled payments.
Bond Discount
The gap between what a bond is worth (its face value) and the lower amount it is sold for in the market.
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