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Dennis exchanges a business storage facility with a $120,000 adjusted basis for $40,000 cash and a parking lot with a $140,000 FMV. What is the amount of gain which Dennis recognizes on the exchange?

User Urbanhusky
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2 Answers

4 votes

Answer:

an airplane used in trade or business for a high-rise construction crane used in trade or business.

All of the following qualify as a like-kind exchange except

A sale of property and subsequent purchase of like-kind property will always qualify as a like-kind exchange.

Which of the following statements with respect to a like-kind exchange is false?

The transaction qualifies as a like-kind exchange for A but not for B.

A owns a ranch in Wyoming, which B offers to purchase. A is not willing to sell the ranch but is willing to exchange the ranch for an apartment complex in Louisiana. The complex is available for sale. B purchases the apartment complex in Louisiana from C and transfers it to A in exchange for A's ranch. The ranch and the complex each have a $1,000,000 fair market value. Which of the following is true?

identified within 45 days and received within 180 days.

Ella needs to move her business to a larger facility. She projects a large realized gain on the sale of the old building and prefers not to pay tax on the gain because the sales proceeds are needed to finance the purchase of the new building. In the circumstances, a direct two- or three-party like-kind exchange is not feasible. Ella's sale can still qualify for like-kind treatment if she arranges an appropriate nonsimultaneous exchange. Among other criteria, after the transfer of the old building, the replacement property must be

0

Landry exchanged land with an adjusted basis of $50,000 for another parcel of land worth $35,000 plus $10,000 of cash. Landry held the original land for investment purposes and will do the same with the new parcel. Due to the exchange, Landry will recognize

40,000

Dean exchanges business equipment with a $120,000 adjusted basis for $40,000 cash and business equipment with a $140,000 FMV. What is the amount of gain which Dean recognizes on the exchange?

$6,000

Daniella exchanges business equipment with a $100,000 adjusted basis for $10,000 cash and business equipment with a $96,000 FMV. What is the amount of gain recognized on the exchange?

$10,000

Gena exchanges land held as an investment with a $60,000 basis for other land with a $80,000 FMV and a motorcycle with a $10,000 FMV. The acquired land is to be held for investment and the motorcycle is for personal use. What is the amount of recognized gain?

0

Pamela owns land for investment purposes. The land is worth $300,000 (basis of $260,000 to Pamela). Pamela exchanges the land, plus $20,000 cash, for a warehouse to be used in her business. The FMV of the warehouse is $400,000, but the warehouse is subject to a mortgage of $80,000, which is assumed by Pamela. Pamela must recognize a gain of

200,000

Kole owns a warehouse used in his business which has an adjusted basis of $240,000 and is subject to a mortgage with an $80,000 principal balance. Kole exchanges the warehouse for land worth $320,000. In addition, he receives cash of $40,000. What is Kole's realized gain?

Step-by-step explanation:

this is right.

User Andrea T
by
5.3k points
2 votes

Answer:

$40,000

Step-by-step explanation:

Data provided in the question:

Adjusted basis of the storage facility = $120,000

Cash = $40,000

FMV of parking lot = $140,000

Now,

Realized gain = ( FMV of parking lot + Cash ) - Basis

= $140,000 + $40,000 - $120,000

= $60,000

Now the recognized gain will be = min [ Realized gain ; Boot received ]

= min [ $60,000 ; $40,000 ]

= $40,000

User Mostafa Soghandi
by
5.2k points