During 2021, Van Industries exchanges land with Frat Corporation. Vans adjusted basis in land is $740,000 and

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During 2021, Van Industries exchanges land with Frat Corporation. Van’s adjusted basis in land is $740,000 and the land Frat provides has a fair market value of $700,000 and an adjusted basis of $660,000.

a. What are the realized and recognized gains to Van?

b. If Frat also pays $80,000 cash to Van, what are the realized and recognized gains to Vans? What is Van’s basis in the acquired land? Will you please show the work I am lost on this one.

c. If Form it instead assumes a $100,000 recourse loan on Vee’s land, what are the realized and recognized gains to Vee? What is Vee’s basis in the acquired land?

Posted Date: Dec 04, 2021 06:27 PM

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During 2021, Van Industries exchanges land with Frat Corporation. Vans adjusted basis in land is $740,000 and

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Step 1 Realized value were the value that is adjustable For Frat 740000 For Van ... View the full answer

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