Blue Sky LLC exchanged land used in its business for land that it will also use for business purposes. Blue Sky originally purchased the original land for $28,000. The original land has a fair market value of $37,000; the replacement land has a fair market value of $35,000. Blue Sky also received $2,000 worth of office equipment in the transaction. 

What is Blue Sky's deferred gain on the exchange? 

Answer rating: 100% (QA)

Blue Skys Deferred Gain Calculation Blue Sky has a deferred gain on the exchange because they are ex... View the full answer