Question
Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A
Prater Incorporated 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 |
| Assets Received | FMV |
|---|---|
| Land | $ 522,000 |
What are Praters realized and recognized gain on the exchange and its basis in the assets it received in the exchange?
DescriptionAmountRealized gain ?
Recognized gain $11,500
Adjusted basis in new property ?
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Accountability Ethics And Sustainability Of Organizations
Authors: Sandro Brunelli, Emiliano Di Carlo
3rd Edition
3030311929, 9783030311926
