Under the doctrine of constructive eviction,a tenant may terminate a lease because the condition of the property is unsuitable for the purposes for which it was leased.
Cory sells his entire interest in a rental property in which he actively participated at a gain of $12,000.The activity has a current year loss of $4,800 and $16,000 in prior year suspended losses.During the year,Cory has $80,000 in salary.What is Cory's AGI for the year?
$71,200.The gain on the sale of $12,000 would offset the current year loss of $4,800 and a portion of the $16,000 in prior year suspended losses.The remaining $8,800 of prior year suspended losses would then be available to offset Cory's active income.
AS
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Zoe Corporation has the following information for the month of March: Prepare (a) a statement of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the "Inventory" section of the balance sheet.