How would your answers change to Application Problem 8 if the transaction qualified as an excluded transaction?

Problem 8

Chase would like to exchange land that he owns (adjusted basis \($140,000\) and FMV of \($172,000)\) for land in a neighboring county (adjusted basis \($120,000\) and FMV \($142,000)\) plus cash of \($30,000.\) Assume that the parcels of land are qualified property for treating this as a deferred transaction, and that the cash is boot.

a. What is Chase’s realized gain?

b. What is Chase’s recognized gain?

c. What is Chase’s deferred gain?

d. What is Chase’s basis in the property received?

e. What is Chase’s holding period in the new property?