31. LO.5 Determine the realized, recognized, and postponed gain or loss and the new basis for each of the following like-kind exchanges:

Adjusted Basis of Old Asset Boot Given Fair Market Value of New Asset Boot Received

a. $ 7,000 $ –0– $12,000 $4,000

b. 14,000 2,000 15,000 –0–

c. 3,000 7,000 8,000 500

d. 15,000 –0– 29,000 –0–

e. 10,000 –0– 11,000 1,000

f. 17,000 –0– 14,000 –0–

g. Create a Microsoft Excel spreadsheet that—by entering the fair market value and basis of property given up and the fair market value of property received—

will compute (1) realized gain or loss, (2) boot received, (3) boot given,

(4) gain (loss) recognized, (5) gain (loss) deferred, and (6) the basis of like-kind property received. In separate tabs, the spreadsheet should apply the “simplified method” and the “alternative method.” Ignore the implications of debt and depreciation.

Test your spreadsheet using the data in this problem (and problem 28).

E-mail your spreadsheet to your instructor along with a brief summary of how you built the spreadsheet.