Name: HARRIET Questions on Ch 9-Like-kind exchanges NAKITENDE Due Wednesday April 8, 2020 by midnight. Problem 1 - 5 questions x 5 points = 25 points Mrs., single, owns her principal residence in New Hampshire (Adjusted basis is $500,000). She has been living in this house for the past 5 years. On May 1, 2020 a flood completely destroyed her principal residence and she received $900,000 from her insurance company to rebuild or replace the home. Mrs. decides to build a replacement home. 1. What is the realized gain? 2. What is the excess gain? 3. How much needs to be reinvested in order to exclude the excess gain? 4. How much gain must she recognize if she invests only $600,000 in the new principal residence? 5. How much gain must she recognize if she invests only $350,000 in the new principal residence? Problem 2-8 questions x 5 points = 40 points Tom and Jerry create a partnership and are equal partners. Tom brings a piece of equipment to create the partnership: Fair Market Value of the equipment is $600,000, Adjusted basis is $300,000 and the equipment has a loan of $50,000 that will be assumed by the partnership Jerry brings a building to create the partnership: Fair Market Value of the building is 5500,000, Adjusted basis is $200,000 and the building has a mortgage of $100,000 that will be assumed by the partnership Partnership 1) What is the total liability assumed by the partnership? Partnership 2) What is the partnership's basis in the contributed assets? 3) What is Tom realized gain? Jerry 4) What is Jerry realized gain? 5) What is Tom recognized gain? 6) What is Jerry recognized gain? 7) What is Tom basis in the partnership? 3) What is Jerry basis in the partnership