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Firm Q exchanged old property with an $119,800 tax basis for new property with a $96,400 FMV. Apply the generic rules under each of
Firm Q exchanged old property with an $119,800 tax basis for new property with a $96,400 FMV. Apply the generic rules under each of the following assumptions: Required: a. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are not qualified property for nontaxable exchange purposes. b. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are qualified property for nontaxable exchange purposes. c. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q paid $3,450 cash to the other party. d. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q paid $3,450 cash to the other party. e. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q received $9,300 cash from the other party. f. Compute Q's realized loss, recognized loss, and tax basis in the new property assuming old property and new property are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q received $9,300 cash from the other party.
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