Jack exchanged land with an adjusted basis of $65,000 subject to a liability of $22,000 for $50,000
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Question:
Jack exchanged land with an adjusted basis of $65,000 subject to a liability of $22,000 for $50,000 (FMV) of stock owned by Hayden. Hayden takes the land subject to the liability. Jack incurs$500 of selling expenses. What is the amount of Jack's realized gain on the exchange?
a. ($14,000) loss
b. ($14,500) loss
c. $6,500 gain
d. $7,000 gain
Related Book For
Fundamentals Of Taxation 2015
ISBN: 9781259293092
8th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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