Assignment task: In March of Year One, Eliza finds a valuable necklace in a municipal parking garage. She turns it over to the city police who wait for six months for the original owner to claim it. In September of Year One, the city tells Eliza the necklace is hers to keep under city law (since it was not claimed by the original owner in the allotted time). In Year One, the necklace is worth $5,000. Late in Year Four, Eliza and Sam, who had been married for many years, divorce. Early in Year Five, Sam receives the necklace (which is then worth $9,000) as part of the divorce property settlement. In Year Seven, Sam has the necklace appraised and it is officially valued at $11,000. Sam has owed Carl $14,000 for two years and has been unable to pay. Sam takes the appraisal and the necklace to Carl and asks Carl to accept the necklace as partial payment and to cancel the remaining debt. Carl agrees. At all times, in Year Seven, Sam's net worth is only $25,000. Which of the following best represents the likelyAssignment task: In March of Year One, Eliza finds a valuable necklace in a municipal parking garage. She turns it over to the city police who wait for six months for the original owner to claim it. In September of Year One, the city tells Eliza the necklace is hers to keep under city law (since it was not claimed by the original owner in the allotted time). In Year One, the necklace is worth $5,000. Late in Year Four, Eliza and Sam, who had been married for many years, divorce. Early in Year Five, Sam receives the necklace (which is then worth $9,000) as part of the divorce property settlement. In Year Seven, Sam has the necklace appraised and it is officially valued at $11,000. Sam has owed Carl $14,000 for two years and has been unable to pay. Sam takes the appraisal and the necklace to Carl and asks Carl to accept the necklace as partial payment and to cancel the remaining debt. Carl agrees. At all times, in Year Seven, Sam's net worth is only $25,000. Which of the following best represents the likely tax results?
In Year One, Eliza has no income. In Year Five, Sam has no income. In Year Seven, Sam has a $11,000 gain and $3,000 of income.
In Year One, Eliza has no income. In Year Five, Sam has a $9,000 gain. In Year Seven, Sam has a $2,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $2,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $6,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has a $4,000 gain. In Year Seven, Sam has a $5,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has $9,000 in ordinary income. In Year Seven, Sam has a $2,000 gain and $3,000 of income. In March of Year One, Eliza finds a valuable necklace in a municipal parking garage. She turns it over to the city police who wait for six months for the original owner to claim it. In September of Year One, the city tells Eliza the necklace is hers to keep under city law (since it was not claimed by the original owner in the allotted time). In Year One, the necklace is worth $5,000. Late in Year Four, Eliza and Sam, who had been married for many years, divorce. Early in Year Five, Sam receives the necklace (which is then worth $9,000) as part of the divorce property settlement. In Year Seven, Sam has the necklace appraised and it is officially valued at $11,000. Sam has owed Carl $14,000 for two years and has been unable to pay. Sam takes the appraisal and the necklace to Carl and asks Carl to accept the necklace as partial payment and to cancel the remaining debt. Carl agrees. At all times, in Year Seven, Sam's net worth is only $25,000. Which of the following best represents the likely tax results?
In Year One, Eliza has no income. In Year Five, Sam has no income. In Year Seven, Sam has a $11,000 gain and $3,000 of income.
In Year One, Eliza has no income. In Year Five, Sam has a $9,000 gain. In Year Seven, Sam has a $2,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $2,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $6,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has a $4,000 gain. In Year Seven, Sam has a $5,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has $9,000 in ordinary income. In Year Seven, Sam has a $2,000 gain and $3,000 of income.?
In Year One, Eliza has no income. In Year Five, Sam has no income. In Year Seven, Sam has a $11,000 gain and $3,000 of income.
In Year One, Eliza has no income. In Year Five, Sam has a $9,000 gain. In Year Seven, Sam has a $2,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $2,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $6,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has a $4,000 gain. In Year Seven, Sam has a $5,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has $9,000 in ordinary income. In Year Seven, Sam has a $2,000 gain and $3,000 of income. In March of Year One, Eliza finds a valuable necklace in a municipal parking garage. She turns it over to the city police who wait for six months for the original owner to claim it. In September of Year One, the city tells Eliza the necklace is hers to keep under city law (since it was not claimed by the original owner in the allotted time). In Year One, the necklace is worth $5,000. Late in Year Four, Eliza and Sam, who had been married for many years, divorce. Early in Year Five, Sam receives the necklace (which is then worth $9,000) as part of the divorce property settlement. In Year Seven, Sam has the necklace appraised and it is officially valued at $11,000. Sam has owed Carl $14,000 for two years and has been unable to pay. Sam takes the appraisal and the necklace to Carl and asks Carl to accept the necklace as partial payment and to cancel the remaining debt. Carl agrees. At all times, in Year Seven, Sam's net worth is only $25,000. Which of the following best represents the likely tax results?
In Year One, Eliza has no income. In Year Five, Sam has no income. In Year Seven, Sam has a $11,000 gain and $3,000 of income.
In Year One, Eliza has no income. In Year Five, Sam has a $9,000 gain. In Year Seven, Sam has a $2,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $2,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has no income. In Year Seven, Sam has a $6,000 gain and $3,000 of income.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has a $4,000 gain. In Year Seven, Sam has a $5,000 gain.
In Year One, Eliza has $5,000 in ordinary income. In Year Five, Sam has $9,000 in ordinary income. In Year Seven, Sam has a $2,000 gain and $3,000 of income.