Realized Gains
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Richard exchanges a building with a FMV of $75,000, a basis of $35,000, and subject to a liability of $25,000 for land with a FMV of $50,000 owned by Bill. What is the amount of Richard's realized gain?
A. $0
B. $15,000
C. $25,000
D. $40,000
35,000 + 25,000 = 50,000
50,000-50,000 = 0 A.
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Solution Summary
This solution illustrates how to compute the realized gain on a like-kind exchange.
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Realized gain is the excess of the fair market value of the assets received and the liabilities assumed by the buyer over the basis of the property given ...
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