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Elana exchanges a lot of land that is used exclusively for business purposes for another lot that also is to be used exclusively for business.
Elana exchanges a lot of land that is used exclusively for business purposes for another lot that also is to be used exclusively for business. The adjusted basis for the old lot is $21,850, and its FMV is $17,250.
Required:
- Calculate Elanas recognized gain or loss on the exchange.
Note: If no gain or loss is recognized, select "No gain or loss".
- Calculate Elanas basis for the lot she receives.
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