Rios, Inc. began business four years ago as a C corporation and had never sold a section 1231 asset until this year a. In the current year, Rios sold the following business assets Rios owned each of the assets for several years. Complete the following chart Accumulated Proceeds Original Cost Depreciation Adjusted Basis Gain/Loss Ordina 7,000 2,000 6,000 20,000 Capital Machine Furniture Computer Buildin Land ABC Stock 13,000 10,000 2,000 72,000 250,000 12,000 12,000 10,000 9,000 90,000 300,000 4,000 b. Rios also owned land in a business with a basis of $70,000 and a fair market value of $90,000. On Feb. 1st Rios exchanged the land for a warehouse owned by Baez Corporation plus $10,000 in cash from Baez. Baez's warehouse has a basis of $60,000 and a fair market value of $100,000. The warehouse has a basis of $60,000 Rios agreed to assume the mortgage. What is Rios' adjusted basis in the new warehouse after the exchange? How much gain or loss will Rios recognize in the exchange? How much gain or loss will Baez recognize in the exchange? c. If Rios's taxable income before recognizing any of the above gains or losses equals $200,000 what is the taxable income for the year? And what is the tax liability? Rios, Inc. began business four years ago as a C corporation and had never sold a section 1231 asset until this year a. In the current year, Rios sold the following business assets Rios owned each of the assets for several years. Complete the following chart Accumulated Proceeds Original Cost Depreciation Adjusted Basis Gain/Loss Ordina 7,000 2,000 6,000 20,000 Capital Machine Furniture Computer Buildin Land ABC Stock 13,000 10,000 2,000 72,000 250,000 12,000 12,000 10,000 9,000 90,000 300,000 4,000 b. Rios also owned land in a business with a basis of $70,000 and a fair market value of $90,000. On Feb. 1st Rios exchanged the land for a warehouse owned by Baez Corporation plus $10,000 in cash from Baez. Baez's warehouse has a basis of $60,000 and a fair market value of $100,000. The warehouse has a basis of $60,000 Rios agreed to assume the mortgage. What is Rios' adjusted basis in the new warehouse after the exchange? How much gain or loss will Rios recognize in the exchange? How much gain or loss will Baez recognize in the exchange? c. If Rios's taxable income before recognizing any of the above gains or losses equals $200,000 what is the taxable income for the year? And what is the tax liability