1)In a like-kind exchange, Tom exchanged with Jerry a piece of equipment with a fair market value of $8,000 an also received a boot of $4,000 from Jerry.

Tom had purchased the equipment for $30,000 and there was an accumulated depreciation of $25,000 at the date of the like-kind exchange.

a-What is Jerry's Fair market value of the equipment exchanged?

b-What is Tom's gain realized?

c- What is Tom's gain recognized?

d-What is the nature of the gain recognized? Ordinary? Capital Gain? Section 1231 gain?

e-Why?

2)Can a corporation exchange a developed realty for a non-developed realty?

a-Yes? Or No?

3)Why?