FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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During the current year, Ethel exchanges a business land for different business land in a like-kind exchange. Ethel's adjusted basis in the land given up is $7,000, and she receives a land worth $13,000 plus $3,000 cash.
a. |
Calculate the amount of gain realized by Ethel on the exchange.
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b. |
Calculate the amount of the gain that must be recognized by Ethel on the transaction.
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