Question
In Year 7, ABC Company exchanged commercial real estate that is owned for other commercial real estate plus cash of $100,000. The following additional information
In Year 7, ABC Company exchanged commercial real estate that is owned for other commercial real estate plus cash of $100,000. The following additional information pertains to this transaction: Property Given Up by Alpha Company Fair value $500,000 Adjusted Basis $300,000 Property Received by Alpha Company Fair Value $400,000 What amount of gain should be recognized in ABC's Year 7 income tax return?
| a. | $200,000 | |
| b. | $50,000 | |
| c. | $0 | |
| d. | $100,000 |
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
