LT Parking Co owns a vacant lot used in its business. It exchanges it for a property with a small storage facility on it owned by Anne LLC. The basis of L-T's vacant lot is $40,000. Anne receives $20,000 cash plus the vacant lot in exchange for Anne's property, which is worth $36,000. Anne's basis in the original asset is $10,000.

1. What is LT Parking Co's gain or loss? Is the gain realized or recognized?

2. What is LT Parking Co's basis in the new asset?

3. What is Anne's gain or loss?

4. What is Anne's adjusted basis in the new asset?

5. What is L-T Parking Co's deferred gain or loss?

Answer rating: 100% (QA)

1 What is LT Parking Cos gain or loss Is the gain realized or recognized Cost of the vacant lot 40000 Fair Market Value of Annes property 36000 New as... View the full answer