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Bruce and Caitlyn exchange warehouses in a transaction that qualifies as a like-kind exchange. As part of the transaction, Caitlyn gives Bruce a car. In
Bruce and Caitlyn exchange warehouses in a transaction that qualifies as a like-kind exchange. As part of the transaction, Caitlyn gives Bruce a car. In addition, Caitlyn agrees to assume a $20,000 liability attached to the warehouse that is transferred by Bruce. The details of the property exchanged are as follows: Bruce Property Surrendered: Warehouse Market Value $ 143,000 Adj. Basis 97,000 Caitlyn Property Surrendered: Warehouse Market Value $99,000 Adj. Basis 93,000 Car $24,000 35,000 a. Do Answer the following questions showing your computations using good form. How much is Bruce's realized gain or loss? b. How much is Bruce's recognized gain or loss? How much is Bruce's basis in the warehouse received? d. How much is Bruce's basis in the car received? C
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