Bob the Builder is thinking about relocating from Boston to Oxford, OH. Bob the Builder ownsan apartment
Question:
Bob the Builder is thinking about relocating from Boston to Oxford, OH. Bob the Builder ownsan apartment building in Boston with a fair market value of $800,000, an adjusted basis of$780,000 and is subject to a mortgage of $300,000. Bob the Builder has contacted Joe thePlummer who just happens to own farmland in Oxford, OH. Joe the Plummer's farmland (heldfor investment purposes) has a fair market value of $600,000, an adjusted basis of $650,000 and$180,000 mortgage. To balance the transaction Joe the Plummer has offered to give Bob theBuilder some stock with a fair market value of $80,000 and an adjusted basis of $90,000. Basedon this information answer the following questions.
1. Bob the builders recognized gain on the disposition of his Boston apartment buildings
2. Bob the builders basis in his new Columbia farmland
3. Bob the builders new basis in stock received
4. Joe the plumbers gain recognized on the disposition of his farmland
5. Joe the plumbers recognized gain/loss on the disposition of stock
6. Joe the plumbers basis in his new Boston apartment building
