8. Tom and his wife want to sell their ranch in Florida (FMV $1,500,000/ basis $500,000) and move to Montana. While looking for land in Montana they met with Joel, a rancher who wants to move to Florida. Joel owns land with a FMV of $1,000,000 and a basis of $100,000. Tom and his wife told him it was not an acceptable exchange. He has countered by adding cattle worth $500,000. If they accept Joel's offer: 3

8. Tom and his wife want to sell their ranch in Florida (FMV $1,500,000/ basis $500,000 ) and move to Montana. While looking for land in Montana they met with Joel, a rancher who wants to move to Florida. Joel owns land with a FMV of $1,000,000 and a basis of $100,000. Tom and his wife told him it was not an acceptable exchange. He has countered by adding cattle worth $500,000. If they accept Joel's offer