Explore BrainMass

Explore BrainMass

    Realized Gain or Loss

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    12. Ethyl owns an apartment house that has an adjusted basis of $950,000 but is subject to a mortgage of $240,000. She transfers the apartment house to Bert and receives from him $150,000 in cash and an office building with a fair market value of $975,000 at the time of the exchange. Bert assumes the $240,000 mortgage on the apartment house.

    a. What is Ethyl's realized gain or loss?
    b. What is her recognized gain or loss?
    c. What is the basis of the newly acquired office building?

    See the attached file.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:36 pm ad1c9bdddf
    https://brainmass.com/business/accounting/realized-gain-loss-144842

    Attachments

    Solution Preview

    FMV of property Received 975,000
    Cash 150,000
    Mortgage ...

    Solution Summary

    Realized gain or losses are discussed.

    $2.19

    ADVERTISEMENT