Question
You will be asked 4 questions related to this set of facts: Ezra trades a warehouse (FMV $270,000; Orig. cost $300,000; Adj. basis $250,000) to
You will be asked 4 questions related to this set of facts: Ezra trades a warehouse (FMV $270,000; Orig. cost $300,000; Adj. basis $250,000) to Aditi for an office building (FMV $290,000; Orig. cost $300,000; Adj. basis $220,000). Aditi also assumes Ezras debt of $13,000. Ezra assumes Aditis debt of $32,000 and transfers $1,000 cash to Aditi. Ezra and Aditi are both sole proprietors that have used these assets as part of their business. Both have held their assets for the last three years. Both Ezra and Aditi intend to use their new assets in the same capacity.
What is Aditis total recognized gain?
Group of answer choices $20,000 $0 None of these answers are correct. $50,000 $70,000
You will be asked 4 questions related to this set of facts: Ezra trades a warehouse (FMV $270,000; Orig. cost $300,000; Adj. basis $250,000) to Aditi for an office building (FMV $290,000; Orig. cost $300,000; Adj. basis $220,000). Aditi also assumes Ezras debt of $13,000. Ezra assumes Aditis debt of $32,000 and transfers $1,000 cash to Aditi. Ezra and Aditi are both sole proprietors that have used these assets as part of their business. Both have held their assets for the last three years. Both Ezra and Aditi intend to use their new assets in the same capacity.
What is Aditis total recognized gain?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
