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 | $ | 525,000 | $ | 241,000 | $76,000 |
| Land | 97,000 | 97,000 | |||
| Mortgage on warehouse | 31,500 | ||||
| Cash | 19,500 | 19,500 | |||
|
| |||||
| Assets Received | FMV |
| Land | $610,000 |
|
| |
What is Praters realized and recognized gain on the exchange and its basis in the assets it received in the exchange?
Realized Gain?
Recognized Gain?
Adjusted Basis in new property?
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English For Accounting And Auditing Students Book
Authors: Dejan Arsenovski
1st Edition
869212253X, 978-8692122538
