ZuoTi.Pro
Question

Help please

Part 1: Answer the below questions. You must show your calculations and explain your answer.


XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from one of its retail locations to LMN Company and ABC receives land to develop an amusement park. The building from ABC has a FMV of $475,000 and an original purchase price of $400,000 and depreciation taken of $60,000. The land from LMN has a basis and FMV of $375,000 and they give $100,000 cash to ABC. 


Does this exchange qualify for a like-kind exchange treatment?
What is the realized gain on the exchange to ABC Company?
What is the recognized gain on the exchange to ABC Company?
What is the total basis in the property and cash received by ABC Company?

340,000


What is the recognized gain to LMN Company on the transaction?
What is the basis in the property received by LMN Company in the exchange?

Part 2: 
Bill exchanges unimproved land with a $53,000 basis and marketable securities with a $13,000 basis for an eight-unit apartment building having a $153,000 FMV. The land and marketable securities are held by Wayne as investments, and the apartment building is held as an investment. The marketable securities have a $28,000 FMV. What is his realized gain, recognized gain, and the basis for the apartment building? Show your calculations.




0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Help please
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Need help

    Bill exchanges unimproved land with a $53,000 basis and marketable securities with a $13,000 basis for an eight-unit apartment building having a $153,000 FMV. The land and marketable securities are held by Wayne as investments, and the apartment building is held as an investment. The marketable securities have a $28,000 FMV. What is his realized gain, recognized gain, and the basis for the apartment building? Show your calculations.

  • XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from...

    XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from one of its retail locations to LMN Company and ABC receives land to develop an amusement park. The building from ABC has a FMV of $385,000 and an original purchase price of $310,000 and depreciation taken of $65,000. The land from LMN has a basis and FMV of $295,000 and they give $90,000 cash to ABC. Does this exchange qualify for a like-kind exchange...

  • Help please! Prater Inc. enters into an exchange in which it gives up its warehouse on...

    Help please! Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $52,090 Transferred Warehouse Land Mortgage on warehouse Cash Original FMV Basis $ 517,500 $ 263,800 88,090 88,888 33,750 29,290 29,800 Assets Received FMV $608,750 Land What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in...

  • In each of the problems below please describe the tax consequences to the parties involved in...

    In each of the problems below please describe the tax consequences to the parties involved in the transaction. The answer should include an analysis of whether Section 351 applies to the transaction (unless the problem already states that Section 351 applies) and the computations for any recognized gain, the tax basis of any stock received by the shareholders; the tax basis of any property received by the corporation and the holding period of the stock/property. 1. On January 1, 2019...

  • Fred exchanges a piece of business land (FMV 90,000; adjusted basis $50,000) and cash $1,000 for another piece of business land (FMV 70,000; adjusted basis $30,000) and $10,000 cash. a. What is Fred’s...

    Fred exchanges a piece of business land (FMV 90,000; adjusted basis $50,000) and cash $1,000 for another piece of business land (FMV 70,000; adjusted basis $30,000) and $10,000 cash. a. What is Fred’s realized gain/loss on the transaction? b. What is Fred’s recognized gain/loss on the transaction? c. What is Fred’s basis in the new land (land received)?

  • Flash Thompson exchanged land with an FMV of $74,500 and an adjusted basis of $40,000 for...

    Flash Thompson exchanged land with an FMV of $74,500 and an adjusted basis of $40,000 for land with an FMV of $59,500. Flash also paid with securities with a FMV of $5,000 and an adjusted basis of $3,100 and received an automobile worth $20,000. What is Flash’s realized gain, recognized gain and basis in the property received?

  • Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...

    Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Transferred FMV Original Basis Accumulated Depreciation Warehouse $ 410,000 $ 266,000 $55,000 Land 72,500 72,500 Mortgage on warehouse 53,750 Cash 20,750 20,750 Assets Received FMV Land $449,500 What is Prater’s realized and recognized gain on the exchange and its basis in the assets it received in the exchange?...

  • Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...

    Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $59,500 Transferred Warehouse Land Mortgage on warehouse Cash Original FMV Basis $ 457,500 $ 239,000 74,500 74,500 33, 250 24,500 24,500 Assets Received Land FMV $523,250 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the...

  • Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...

    Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $76,000 Transferred Warehouse Land Mortgage on warehouse Cash Original Basis $ 241,000 97,000 FMV $525,000 97,000 31,500 19,500 19,500 Assets Received Land FMV $610,000 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...

  • Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...

    Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Original Basis Accumulated Depreciation $52,000 Transferred FMV $517,500 $ 263,000 88,000 33,750 29,000 Warehouse Land 88,000 Mortgage on warehouse Cash 29,000 Assets Received FMV Land $600.750 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT