What is the basis of the new property in each of the following situations? Is any gain
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a. Rental house with an adjusted basis of $100,000 exchanged for personal-use river cottage with a FMV of $130,000.
b. General Motors common stock with an adjusted basis of $19,000 exchanged for Quaker Oats common stock with a FMV of $14,000.
c. Land and building with an adjusted basis of $25,000 used as a furniture repair shop exchanged for land and a building with a FMV of $52,000 used as a car dealership.
d. An office building with an adjusted basis of $22,000 exchanged for a heavy-duty truck with a FMV of $28,000. Both properties are held 100% for business purposes.
e. A residential rental property held for investment with an adjusted basis of $230,000 exchanged for a warehouse to be held for investment with a FMV of $180,000.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Fundamentals Of Taxation 2015
ISBN: 9781259293092
8th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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