Daniela Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2021, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. Because the real estate market on the East Coast is thriving, on September 1, 2022, Lisa sells the land she acquired for $120,000. If an amount is zero, enter "O". a. What are Daniela's recognized gain or loss and adjusted basis for the West Coast land on January 4, 2021? Her realized gain for the West Coast land is $ 12,000, her recognized , and her adjusted basis is $ is $ b. What are Lisa's recognized gain or loss and adjusted basis for the East Coast land on January 4, 2021? Lisa's realized for the East Coast land is $ , her recognized and her adjusted basis is $ is $ c. What is Lisa's recognized gain or loss from the September 1, 2022 sale? Lisa's realized is $ and her recognized is $ d. What effect does Lisa's 2022 sale have on Daniela? Lisa's sale of the East Coast land has for Daniela. e. Complete the letter to Daniela advising her of the tax consequences of this exchange. SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 January 14, 2021 Ms. Daniela Fletcher The Corral El Paso, TX 79968 Dear Ms. Fletcher: You asked about the tax consequences of the January 4, 2021 land exchange with Lisa Martin. Based on the data provided, the tax consequences are as follows: Amount realized Less: adjusted basis Equals: realized gain NII Recognized gain of your potential gain of Because the transaction as a nontaxable like-kind exchange, is recognized. The adjusted basis for the land received is $ If I can be of further assistance, please let me know. Sincerely, Kayla Benson, CPA Tax Partner