John and Adam exchange offices in a transaction that qualifies as a like-kind exchange. As part of the transaction, Adam gives John a truck. In addition, Adam agrees to assume a $20,000 liability attached to the office that is transferred by John. The details of the property exchanged are as follows:

John Adam

Property Surrendered: Property Surrendered:

Office Office Truck

Market Value $ 130,000 Market Value $ 95,000 $15,000

Adj. Basis 94,000 Adj. Basis 98,000 19,000

Do

Answer the following questions showing your computations using good form.

a. How much is John’s realized gain or loss?

b. How much is John’s recognized gain or loss?

c. How much is John’s basis in the office received?

d. How much is John’s basis in the truck received?

Answer rating: 100% (QA)

Realized Gain Value of property received Boot received Boot paid Basis of property ... View the full answer