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In a 1031 like-kind exchange, Rafael exchanges equipment that originally cost $200,000. On the date of the exchange, the equipment given up has an adjusted
In a 1031 like-kind exchange, Rafael exchanges equipment that originally cost $200,000. On the date of the exchange, the equipment given up has an adjusted basis of $85,000 and a fair market value of $110,000. Rafael pays $15,000 and receives equipment with a fair market value of $125,000.
Compute the following. If an amount is zero, enter "0". a. Rafael's realized gain on the exchange is $____. b. Rafael's recognized 1031 gain is $___. c. Rafael's 1245 depreciation recapture of $___is carried over to the replacement property.
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