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Tom Tanner traded in a business building with an adjusted basis of $200,000 for a smaller building valued at $120,000. In addition to the smaller
Tom Tanner traded in a business building with an adjusted basis of $200,000 for a smaller building valued at $120,000. In addition to the smaller building, Tom received $30,000 in cash and was relieved of the existing liability on the old building of $50,000. What is Toms realized gain? What is Tom's recognized gain? What is Toms basis in the new building?
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