Question
Gallery owner Hart Deeler exchanges his current showroom, which has an adjusted basis of $606,000, for a new showroom which has a fair market value
Gallery owner Hart Deeler exchanges his current showroom, which has an adjusted basis of $606,000, for a new showroom which has a fair market value of $608,000. In addition, Hart Deeler receives $15,000 in cash, and his mortgage of $81,000 is assumed.
Hart Deeler's adjusted basis in the new showroom is [Basis]: -------
Gallery owner Hart Deeler exchanges his current showroom, which has an adjusted basis of $612,000, for a new showroom which has a fair market value of $608,000. In addition, Hart Deeler receives $15,000 in cash, and his mortgage of $81,000 is assumed.
Hart Deeler's adjusted basis in the new showroom is [Basis]: -------
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