LO.5 Hyacinth Realty Company owns land in Iowa that was originally purchased for

$130,000. Hyacinth has received an all-cash offer in the amount of $400,000 from a wellknown shopping center developer. An international real estate broker has now offered some land located outside Florence, Italy, that is worth $400,000 in exchange for the Iowa property. Please write the company a letter analyzing these options from a tax standpoint.

Hyacinth’s address is 2501 Longview Lane, Des Moines, IA 50311.

DECISION MAKING