1)Grandpa purchased a house in New Hampshire 20 years ago for $30,000. When he died, an appraisal report showed that the house had a fair market value of $650,000. The house went to his Nephew Tom.

In a like-kind exchange, Tom exchanged the house with Jerry. Jerry's house at the time of the exchange had a fair market value of $450,000 and an adjusted basis of $325,000

a-What is the reason why there is a boot in this exchange?

b-Who is PAYING the boot?Tom or Jerry?

c-How much is the boot: $________

d-What is Tom's Gain Realized? ________

e-What is Jerry's Gain Realized? ________

f-What is Tom's Gain Recognized? ________

g-What is Jerry's Gain Recognized? ________

h-What is Tom's basis in the new house received? ________

i-What is Jerry's basis in the new house received? ________