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Author Question: Laurie owns land held for investment. The land's FMV is $150,000. Laurie's basis in the land is ... (Read 588 times)

Starlight

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Question 1

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
◦ $10,000 gain.
◦ $5,000 gain.
◦ $5,000 loss.
◦ $0.

Question 2

Laurie owns land held for investment. The land's FMV is $150,000. Laurie's basis in the land is $130,000.  Laurie exchanges the land, plus $20,000 of cash, for a warehouse owned by Trey. The warehouse is worth $210,000, but is subject to a mortgage of $40,000 which Laurie will assume. Trey's basis in the warehouse is $120,000. Laurie's basis in the warehouse received will be
◦ $150,000.
◦ $170,000.
◦ $190,000.
◦ $210,000.


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Marked as best answer by Starlight on Sep 13, 2020

kaykay69

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Starlight

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Reply 2 on: Sep 13, 2020
Excellent


rachel

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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