Question
15. Que purchased land for $21,000 by paying $16,000 and signing a mortgage for $5000. Over a year later Que trades that land for a
15. Que purchased land for $21,000 by paying $16,000 and signing a mortgage for $5000. Over a year later Que trades that land for a new piece of land worth $26,000 . The other party buyer assumes Ques mortgage. How much if any gain does Que realize on the swap?
16. Ques mortgage of $4,000 is assumed and Que receives land worth $26,000. Does Que recognize gain on the swap and if so, how much is it?
17. Que buys the land for $16,000 and signs a mortgage for $4,000. Later Que swaps the land for new land worth $30,000 that is subject to a $3,000 mortgage. Does Que recognize gain on the transaction and if so, how much?
18. What is Ques adjusted basis and holding period in the new land?
19. Show the formula to determine gain or loss realized and recognized on a sale or exchange of property.
20. Show the formula used to determine Ques basis in the land received in question 18.
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