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Business, 04.04.2020 00:03 christabell0303

Firm R owned depreciable real property subject to a $300,000 nonrecourse mortgage. The property’s FMV is only $250,000. Consequently, the firm surrendered the property to the creditor rather than continuing to service the mortgage. At date of surrender, Firm R’s adjusted basis in the property was $195,000. Determine Firm R’s cash flow consequences of the disposition, assuming that the gain recognized is taxed at 21 percent. (Cash outflows should be indicated by a minus sign.)

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Firm R owned depreciable real property subject to a $300,000 nonrecourse mortgage. The property’s FM...
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