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Lily exchanges land used in her business for a different parcel of land to be used in her business. Her adjusted basis for the land
Lily exchanges land used in her business for a different parcel of land to be used in her business. Her adjusted basis for the land is $325,000 and the fair market value is $310,000. The fair market value of the new parcel of land is $300,000. In addition, Lily receives cash of $10,000. Calculate Lilys realized and recognized gain or loss and her adjusted basis for the assets received.
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