Question: Refer to the material in the preceding problem. Timberlake locates suitable property that the owner would sell for $4,800,000 although the property appraises at only

Refer to the material in the preceding problem. Timberlake locates suitable property that the owner would sell for $4,800,000 although the property appraises at only $4,250,000. Carroll is willing to purchase this property for the $4,800,000 asking price. It would then trade this property to Timberlake for its property, but Timberlake would have to pay it $300,000 in addition to transferring the property. What are the tax consequences?

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