Question
Alice and Brendan exchanged the following business real estate: Undeveloped Land (exchanged by Alice) Commercial Building (Exchanged by Brendan) FMV $975,000 $1,570,000 Mortgage $0 (595,000)
Alice and Brendan exchanged the following business real estate:
| Undeveloped Land (exchanged by Alice) | Commercial Building (Exchanged by Brendan) | |
| FMV | $975,000 | $1,570,000 |
| Mortgage | $0 | (595,000) |
| Equity | $975,000 | $975,000 |
a. If Alice's adjusted basis in the undeveloped land was $360,000, compute Alice's realized gain, recognized gain, and basis in the commercial building received in the exchange.
b. If Brendan's adjusted basis in the commercial building was $790,000, compute Brendan's realized gain, recognized gain, and basis in the undeveloped land received in the exchange.
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Handbook Of Corporate Equity Derivatives And Equity Capital Markets
Authors: Juan Ramirez
1st Edition
1119975905, 978-1119975908
