Question
In an exchange, Giada gave up her business-use real property (FMV $40,000, adjusted basis $35,000) for a smaller piece of business-use real property (FMV $25,000)
In an exchange, Giada gave up her business-use real property (FMV $40,000, adjusted basis $35,000) for a smaller piece of business-use real property (FMV $25,000) and $15,000 cash. What is the gain realized and recognized on the exchange? ______ realized gain; _____ recognized gain.
$15,000; $0.
$5,000; $0.
$5,000; $5,000.
$5,000; $15,000.
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Financial Accounting
Authors: Arne E. Jorgensen
1st Edition
8759340886, 9788759340882
