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
Group of answer choices
$5,000 loss
$0
$5,000 gain
$10,000 gain
1) Cost of land held for Investment $50,000
2) Exchange value of Land $35,000
3) Cash Received for Exchange $10,000
Recognized gain (loss) = Exchange worth of land + Cash - Adjusted basis of land)
Recognized gain (loss) = 35000+10000-50000
Recognized gain (loss) = (5000)
Hence loss of $ 5000
Data not available for date of purchase or sale of this transaction so indexation can not be done.
Landry exchanged land with an adjusted basis of $50,000 for another parcel of land worth $35,000...
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