Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics: Adjusted Basis Fair Market Value Sarah's real property $3,600 $9,000 Tyler's real property 1,800 7,200 Equipment 1,620 2,700 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized is s Her adjusted basis in the land and building she acquired from Tyler is $ and her adjusted basis in the equipment is $ b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Sarah? Tyler's recognized is $ and his adjusted basis in the land and building he acquired from Sarah is

Problem 13-74 (a) (LO. 6) Rodriquez owns real estate (adjusted basis of $57,000 and fair market value of $65,000), which he uses in his business. Rodriquez sells the real estate for $65,000 to Jones (a dealer) and then purchases a new parcel of land for $65,000 from Franklin (also a dealer). The new parcel of land would normally qualify as like-kind property. a. What are Rodriquez's realized and recognized gain on the sale of the land he sold to Jones? On the sale of real estate, Rodriquez's realized gain is $ and recognized gain is $ b. Rodriquez's basis for the land he purchased from Franklin is $ c. Indicate whether the following statements are "True" or "False" regarding what would motivate Rodriquez to sell his land to Jones and purchase the land from Franklin rather than exchange one parcel of land for the other. • If Rodriquez sells the parcel of land, the sale would have resulted in the realized gain being postponed. • If Rodriquez sells the parcel of land, the recognition of…

Jennifer transfers properties to Mump Co. in an exchange that meets all the requirements of Code Sec. 351. Several of the transferred properties are subject to liabilities. Will property transfers of this sort cause gain recognition for Jennifer?

Which of the following taxpayers would be most likely to benefit from an installment sale?  (a) Allan. He sold a business-use car at a net gain that was less than the amount of depreciation claimed.  (b) Kayla. She sold business-use land for a gain.  (c) Marie. She sold property she had held in inventory in her business at a net gain.  (d) Robert. He sold a fishing boat at a net loss.

Hrd.1   In a like-kind exchange, Tucker gave up his fully depreciated rental condominium (FMV $90,000, adjusted basis $80,000) and $10,000 for an office building (FMV $100,000). What is the gain realized and recognized on the exchange? ______ realized gain; _____ recognized gain.

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Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? a. $55,000 b. $60,000 c. $52,500 d. $57,500

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