Required: a. If B's adjusted basis in Blackacre was $273,000, compute B's realized gain, recognized gain, and basis in Whiteacre. b. If W's adjusted basis in Whiteacre was $105,600, compute W's realized gain, recognized gain, and basis in Blackacre.
Required: a. If B's adjusted basis in Blackacre was $273,000, compute B's realized gain, recognized gain, and basis in Whiteacre. b. If W's adjusted basis in Whiteacre was $105,600, compute W's realized gain, recognized gain, and basis in Blackacre.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 77P
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Transcribed Image Text:Company B and Firm W exchanged the following business real estate:
FMV
Mortgage
Equity
Required:
Blackacre
(exchanged by B)
Whiteacre
(exchanged by W)
$ 528,000
(186,750)
$ 455,000
(113,750)
$ 341,250
$ 341,250
a. If B's adjusted basis in Blackacre was $273,000, compute B's realized gain, recognized gain, and basis in Whiteacre.
b. If W's adjusted basis in Whiteacre was $105,600, compute W's realized gain, recognized gain, and basis in Blackacre.
Complete this question by entering your answers in the tabs below.
Required A Required B
If B's adjusted basis in Blackacre was $273,000, compute B's realized gain, recognized gain, and basis in Whiteacre.
Realized gain
Recognized gain
Basis
Amount
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