Firm ml, a noncorporate taxpayer, exchanged residential rental property plus $17,200 cash for 20 acres of investment land with a $223,000 fmv. ml used the straight-line method to compute depreciation on the rental property. assuming that ml’s exchange was negotiated at arm’s length, what is the fmv of the rental property? if the adjusted basis of the rental property is $198,000, compute ml’s realized and recognized gain. compute ml’s basis in the 20 acres of investment land.

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?