Jimmy has fallen on hard times recently- Last year he borrowed $250-00.docx

•Download as DOCX, PDF•

0 likes•3 views

Jimmy has fallen on hard times recently. Last year he borrowed $250 , 000 and added an additional $50 , 000 of his own funds to purchase $300 , 000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy's lender agreed to reduce the loan amount to $230 , 000 . For each of the following independent situations, indicate the amount Jimfy must include in gross income: Note: Leave no answer blank. Enter zero if applicable. Required: a. The real estate is worth $175 , 000 and Jimmy has no other assets or liabilities. b. The real estate is worth $235 , 000 and Jimmy has no other assets or liabilities. c. The real estate is worth $200 , 000 and Jimmy has $45 , 000 in other assets but no other liabilities. Complete this question by entering your answers in the tabs below. The real estate is worth $175 , 000 and Jimmy has no other assets or liabilities. .

More from lucilabevin

Jane, who is married to Stuart, and Betty, a divorced single parent, had been best friends for more than 10 years. They did many things together socially and their young children were friends. Stuart was an avid sailor who crewed for others in races whenever he could. Jane had no experience sailing and didn't have the opportunity to learn since they didn't own a boat. One summer Betty dated a sailor. While the relationship was brief, Betty fell in love with sailing. She also wanted something she and her children could do together as a family as they got older. Stuart had a friend that wanted to sell his boat and Betty and Stuart started talking about a partnership. Ultimately, they agreed that Betty would buy the boat for $2 , 000 and Stuart would teach Betty how to sail. They would split the expenses (maintenance, slip fees, etc.) and after the first sailing season, they would be 50 50 partners. There was no written agreement; after all, they were good friends. Stuart had hoped that through Betty, Jane would become interested in sailing, but that didn't happen. One year later, it was sailing season again and the $1 , 000 slip fee was due. One night Jane went to Betty's house, handed her their boat file, and said "It's all yours." Jane said it was because they were short on money. Betty was shocked and miffed that there was no warning and no discussion. It was just dumped on her at the last minute when the bills were due. Betty knew they were giving $5 , 000 to Stuart's eldest daughter for her wedding and believed that Jane was using their finances as an excuse to walk away from the boat. The friendship was strained and they ceased getting together socially. Several months later, Betty and Stuart ran into each other and Stuart said Betty owed him money for his half of the boat. Questions 1. Was Jane's behavior appropriate? Why or why not? 2. Should Betty pay Stuart? If so, how much? 3. What could have been done differently to avoid a rift in the relationship? .

Jane- who is married to Stuart- and Betty- a divorced single parent- h.docx

Jimmy has fallen on hard times recently- Last year he borrowed $250-00.docx

Recommended

Recommended

More Related Content

More from lucilabevin

More from lucilabevin (20)

Recently uploaded

Recently uploaded (20)

Jimmy has fallen on hard times recently- Last year he borrowed $250-00.docx