Question: Elliot Mess exchanged a 12-unit apartment complex with Alfred Cappy for a 100-space mini warehouse property. Elliot also received cash of $5,000. The transaction is

Elliot Mess exchanged a 12-unit apartment complex with Alfred Cappy for a 100-space mini warehouse property. Elliot also received cash of $5,000. The transaction is as follows:

Apartments:

Fair market value $ 480,000

Liability assumed by Alfred 200,000

Adjusted basis to Elliot 280,000

Mini warehouses:

Fair market value $ 515,000

Liability assumed by Elliot 240,000

a. How much is Elliott's gain or loss recognized?

b. How much is Elliott's basis in the mini-warehouses?

Please show calculations for both parts!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

solve both parts please. Accountancy 503 Daily 8 (Sales and Other Dispositions) April 2020 Problem A (6 points) Elliot Mess exchanged a 12-unit apartment complex with Alfred Cappy for a 100-space...

Iliot Mess exchanged a 12-unit apartment complex with Alfred Cappy for a 100 -space mini-warehouse property. Elliot was also required to pay cash of $200,000. he transaction is summarized as follows:...

Elliot Mess exchanged a 12 -unit apartment complex with Alfred Cappy for a 100 -space mini-warehouse property. Elliot was also required to pay cash of $200,000. The transaction is summarized as...

Elliot Mess exchanged a 12-unit apartment complex worth $320,000 (basis = $200,000) with Alfred Cappy for a warehouse property worth $325,000. Elliot also paid cash of $5,000. How much is Elliotts...

Elliot Mess exchanged a 12-unit apartment complex worth $320,000 (basis = $200,000) with Alfred Cappy for a warehouse property worth $325,000. Elliot also paid cash of $5,000. How much is Elliott's...

Elliot Mess intercambi un complejo de apartamentos de 12 unidades con Alfred Cappy por una propiedad de mini almacn de 100 espacios. Elliot tambin recibi $5,000 en efectivo. La transaccin es la...

SOS PLEASE $ CVP Analysis Kong Products makes nearly Indestructible toys for large dogs og Great Danes and St Bernards) The toys provide hours of entertainment for large dogs without the mess created...

Sitting on her patio facing the ocean from her beach house in Malibu, Karla Smith adjusted her make-up and hair in the mirror. Despite her 80 years, she felt bursting with energy and full of...

HELP PLEASE CVP Analysis Kong Products makes newly indestructible toys for large dogs (eg Great Danes and St. Bemords) The toys provide hours of entertainment for large dogs without the mess created...

1. Elliot is the sole registered proprietor of an estate in fee simple in Tamworth ("the property"). The land consists of an old three bedroom farm house. There is a registered easement on the title...

A barge filled with scrap iron is in a canal lock. If the iron is thrown overboard, does the water level at the side of the lock rise, fall, or remain unchanged? Explain.

Julius is a shareholder in a public corporation, which has recently acquired another company, and the consequences for the bidding firm have been catastrophic. Julius is suing the bidders board of...

LEMS i ) Help Save & Exth Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2 0 2 4 operations is as follows: a . January 1 , 2 0 2 4 ,...

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual...

4. Bureau of Labor Statistics on Work Stoppages in the Public Sector. The BLS reports major work stoppages, which include worker-initiated strikes and lockouts by their employers involving 1,000...

3. If there is a contract violation found and the arbitrator sustains Mr. Mitchells Grievance, should he be promoted and receive back pay for the failure to promote him? Why? Why not? At the Coral...

3. Labor Relations and Teachers. Locate and read David Denholms The Impact of Unionism on the Quality of Education as well. The Education Policy Institute in Washington, D.C., provides links to...