Logan and Jonathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $165,500) is worth $198,600 and Jonathan's land has a fair market value of $157,225, Jonathan also gives Logan cash of $41,375. a. Logan's recognized gain is $ b. Assume that Jonathan's land is worth $178,740 and he gives Logan $19,860 cash. Logan's recognized gain is $
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- Mandy and Theo exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $76,800 and transfers real property worth $53,760 (adjusted basis of $37,632) and cash of $23,040. What is Mandy's realized and recognized gain? If an amount is zero, enter "0". Mandy's realized gain is $ and her recognized gain is $Reese and Jake engage in a like-kind exchange. Reese transfers real estate with a fair market value of $500,000 and an adjusted basis of $200,000 to Jake. Jake transfers real estate worth $700,000 and an adjusted basis of $250,000, plus a $200,000 mortgage on the property, to Reese. What is Jake's potential or deferred gain before and after the transaction? $450,000 potential gain before the transaction; $50,000 potential gain after the transaction. $250,000 potential gain before the transaction; $50,000 potential gain after the transaction. $450,000 potential gain before the transaction; $250,000 potential gain after the transaction. $250,000 potential gain before the transaction; $200,000 potential gain after the transaction. Income TaxLogan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875. a. Logan's recognized gain is $____________ . b. Assume that Johnathan's land is worth $103,140 and he gives Logan $11,460 cash. Logan's recognized gain is $___________
- 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. b. Calculate the amount of the gain that must be recognized by Ethel on the transaction.Joe and John intend to enter into a like-kind exchange of real property qualifying for tax treatment under section 1031 of the Internal Revenue Code. Joe transfers land with a tax basis of $100,000 and fair market value of $400,000, subject to a mortgage of $100,000 to John. John transfers land worth $350,000 subject to a mortgage of $50,000. Please complete the following tables to compute Joe’s gain in the transaction and Joe’s basis in the property that he receives from John.kk. Subject :- Accounting Michelle exchanges land in Illinois with a FMV of $100,000 and an adjusted basis of $60,000 for land in Indiana with a FMV of $80,000 and $20,000 cash. Both parcels of land will be used in Michelle's trade or business. What is Michelle's recognized gain or loss?
- 14. Billie and Bobbie both own separate residential real properties. Billie's property has a fair market value of $250,000 and a cost basis of $200,000. Bobbie's property has a fair market value of $275,000 and a cost basis of $180,000. Both individuals agree to exchange properties. In order to facilitate the exchange, Billie agrees to pay Bobbie and additional $25,000 cash. What is Billie's and Bobbie's cost basis in their replacement properties, respectively? a. $205,000 and $175,000 b. $225,000 and $180,000 c. $180,000 and $200,000 d. None of the above.Misha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land A’s fair value was $165,000 at the time of the exchange. Misha gave Land A and $12,000 in cash in exchange for Land B, which had a fair market value of $177,000 at the time of the exchange. Assume the exchange qualifies as a like-kind exchange. What is Misha's recognized gain/loss on the exchange? What is Misha's basis in Land B?1. Joe owns a farm with a basis of $250,000 and a fair market value of $550,000. Willy owns an apartment building with a fair market value of $100,000 and a basis of $300,000. They exchange properties. In addition, Willy gives Joe $450,000 in cash. a. What are Joe's and Willy's realized gain and losses on the transaction? b. What amounts of gain or loss do they recognize on the transaction? c. What is the basis of the property received by Joe? Willy?
- Dudley Morgan gives Barbara Norman property worth $325,000. Dudley's basis in the property is $220,000. (a.) If Barbara sells the property for $375,000, what is her gain or loss on the sale? (b.) If Barbara sells the property for $295,000, what is her gain or loss? (c.) If the fair market value equals $270,000 and Barbara sells the property for $230,000, what is the gain or loss? * Explain in Full detail.Theresa Perry exchanged her investment-use real property for a larger piece of investment-use property. At the time of the exchange, the fair market value (FMV) of the property she traded was $55,000, and her adjusted basis in this property was $27,000. She also provided $11,000 cash. In the exchange, she received investment-use property with an FMV of $66,000.What is Theresa's gain realized and the gain recognized on the exchange? $0 and $28,000 $11,000 and $38,000 $28,000 and $0 $38,000 and $11,000During the current year, Daniel James exchanges land used in his business for a new parcel of land. Daniel's basis in the land is $18,000, and the land is subject to a mortgage of $8,000, which is assumed by the other party to the exchange. Daniel receives new land worth $22,000. Calculate Daniel's recognized gain on the exchange and his basis in the new land. Recognized gain $ Basis in the new land $