QUESTION 5 In a like kind exchange, Harry exchanges land used in his business for different land he will use in his business. The land he gave up was worth $100,000 and his basis in it was $80,000. The land he got back was worth $92,000 and he also got back $8,000 in cash. How much gain will he recognize (be taxed on) on the transaction? None. $8,000. $12,000. $20,000 QUESTION 6 In a like-kind exchange between Lou and Sam, Lou exchanged land used in his business for different land he will use in his business. The land he gave up was worth $80,000 and his basis in it was $50,000. It was subject to $5,000 of debt. The land he got back was worth $75,000 and Sam took over Lou's $5,000 debt. How much gain will Lou recognize (be taxed on) on the transaction? Zero $5,000. $25,000 $30,00