Question
Problems: 1. Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100. Bravo is subject to a mortgage
Problems:
1. Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100. Bravo is subject to a mortgage of $4. B sells the land to Dell who gives Bee $96 in cash and assumes the mortgage.
a)Does Bee realize gain/loss on the transaction and if yes, how much?
b)Does Bee recognize gain/loss on the transaction and if yes, how much?
2. Assume there is no mortgage and Bee swaps Bravo to Dell for land (Waterland) worth $90, and $10 cash.
a)Does Bee realize gain/loss on the transaction and if yes, how much?
b)Does Bee recognize gain/loss on the transaction and if yes, how much?
c)What is Bees basis in Waterland?
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