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F. Naz
F. Naz, Bachelor's Degree
Category: Business and Finance Homework
Satisfied Customers: 5292
Experience:  Have completed B.COM and CA Finalist
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Alex loaned to Ralph $200,000 's fishing supplies

Customer Question

Alex loaned to Ralph $200,000 for Ralph’s fishing supplies company. A drought occurred during the year and many of the lakes dried up. Ralph was unable to pay back the loan. Alex accepted the following plan to extinguish Ralph’s debt to hi:
a) Cash payment immediately of $20,000
b) Transfer of fishing supplies of $100,000 FMV and basis of $80,000
c) Transfer of publicly held stock (unrelated to fishing supplies company) of $20,000 FMV and a basis of $5,000.
How much gain/income Ralph should recognize from his extinguishment of debt.
Submitted: 11 months ago.
Category: Business and Finance Homework
Customer: replied 11 months ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  F. Naz replied 11 months ago.
200000-20000-80000-5000=95000 lossPlease rate the answer so I get credit for my efforts, thanks.
Customer: replied 11 months ago.
Sir, I could have done the simple calculation too. but that is not the answer I'm sorry.
There are IRS codes and treasury regulations involved which need to be considered. I am going to need a refund for this.
Expert:  F. Naz replied 11 months ago.
https://www.irs.gov/publications/p544/ch01.html#en_US_2015_publink100072294THE ABOVE LINK WILL PROVIDE THE INFORMATION YOU NEEDED, THANKS.
Customer: replied 11 months ago.
Sir, I am a working professional and almost done with masters. The reason I needed help was because I did not have time. However, i found the answer myself. The link you sent does not pertain to my question. For your future reference, The correct code is SECTION 108 and related treasury regulations.I am still going to need my refund of $46. Thanks
Expert:  F. Naz replied 11 months ago.
Please contact JA customer service in this regard, thanks.