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LaRhonda owns an office building that has an adjusted basis of $67,800. The building is subject to a mortgage of $30,000. She transfers the building
LaRhonda owns an office building that has an adjusted basis of $67,800. The building is subject to a mortgage of $30,000. She transfers the building to Miguel in exchange for $22,600 cash and a warehouse with an FMV of $74,600. Miguel assumes the mortgage on the building. Required: a. What are LaRhonda's realized and recognized gain or loss? b. What is her basis in the newly acquired warehouse
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