Question
X Corporation exchanged a warehouse located in New York for a warehouse located in New Jersey. The adjusted basis of the New York warehouse was
X Corporation exchanged a warehouse located in New York for a warehouse located in New Jersey. The adjusted basis of the New York warehouse was $30,000. The fair market value of the New Jersey warehouse just prior to the exchange was $25,000. In addition to the warehouse, X Corporation also received $8,000 in cash.
54. The amount realized by X Corporation is:
| a. | $8,000 | |
| b. | $33,000 | |
| c. | $25,000 | |
| d. | Zero | |
| e. | None of the above |
The gain realized by X Corporation is:
| a. | $5,000 | |
| b. | Zero | |
| c. | $3,000 | |
| d. | None of the above |
The gain recognized by X Corporation on the exchange is:
| a. | $8,000 | |
| b. | $3,000 | |
| c. | Zero | |
| d. | None of the above |
The basis for X Corporation in the property received, the warehouse in New Jersey, is:
| a. |
$33,000
| |
| b. |
$30,000
| |
| c. |
$25,000
| |
| d. | None of the above |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Future Of Auditing
Authors: David Hay
1st Edition
1138477087, 9781138477087
