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Question 10 of 30. In an exchange, Denise gave up her investment-use real property (FMV $30,000,...

Question 10 of 30. In an exchange, Denise gave up her investment-use real property (FMV $30,000, basis $25,000) and $6,000 for a larger piece of investment-use real property (FMV $36,000). What is the gain realized and recognized on the exchange? ______ realized gain; _____ recognized gain. $0; $5,000 $5,000; $0 $5,000; $5,000 $6,000; $0

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Answer #1

Realised gain =FMV of property Recived - adjusted basis of property given up

Recognised gain=Lesser of gain realised or boot received.

Realised gain =$5,000. {36,000-(25,000+6,000)}

Recognised gain =$0. Since no boot is received

____×____

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