Question
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows:
| Transferred | FMV | Original Basis | Accumulated Depreciation | ||
| Warehouse | $ | 467,500 | $ | 290,000 | $89,500 |
| Land | 66,000 | 66,000 | |||
| Mortgage on warehouse | 50,750 | ||||
| Cash | 39,250 | 39,250 | |||
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| |||||
| Assets Received | FMV |
| Land | $522,000 |
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| |
What are Praters realized and recognized gain on the exchange and its basis in the assets it received in the exchange?
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Money, Markets And Capital The Case For A Monetary Analysis
Authors: Jean Cartelier
1st Edition
0815355777, 9780815355779
