Like-Kind Exchange: Boot. Determine the realized gain or loss, the recognized ga
ID: 2364988 • Letter: L
Question
Like-Kind Exchange: Boot. Determine the realized gain or loss, the recognized gain or loss, and the basis of the equipment received for the following like-kind exchanges:
Basis of Equipment Exchange
FMV of
Boot Received
FMV of
Equipment Received
$20,000
$ -0-
$85,000
45,000
14,000
70,000
60,000
25,000
65,000
70,000
38,000
60,000
90,000
22,000
55,000
Basis of Equipment Exchange
FMV of
Boot Received
FMV of
Equipment Received
$20,000
$ -0-
$85,000
45,000
14,000
70,000
60,000
25,000
65,000
70,000
38,000
60,000
90,000
22,000
55,000
Explanation / Answer
basis of eqp excnge = 20 + 45 + 60 + 70 + 90 = 285,000
FMV, of boot received = 14 + 25 + 38 + 22 = 99,000
FMV, of eqp received = 85 + 70 + 65 + 60 + 55 = 335,000
net = 335,000 + 99,000 - 285,000 = 149,000
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