Brianna traded her car to Frances for his hot tub. Briannas car had a basis of $15,000and
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Question:
Brianna traded her car to Frances for his hot tub. Brianna’s car had a basis of $15,000 and a FMV of $30,000. Brianna has a car loan of $12,000, which Frances assumes (takes over the loan from Brianna). Frances’s hot tub had a basis of $16,000 and a FMV of $18,000.
a) What is Brianna’s realized gain or loss on the exchange?
b) What is Frances’s realized gain or loss on the exchange?
c) What is Brianna’s basis in her new hot tub?
What is Frances’s basis in his new car?
Related Book For
Taxation Of Individuals 2017
ISBN: 9781259548666
8th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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