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Realized vs recognized gain on sale, adjusted basis

1. On November 4, 2008, Ezra purchased 2,000 shares of DDD stock for $12,000. On June 12, 2010, Ezra sold the 2,000 shares for $9,000. On June 30, 2010, he purchased 1,000 shares of DDD stock for $5,000. What is Ezra's realized gain or loss and his recognized gain or loss on the June 12, 2010 sale? What is his basis in the stock from the June 30 purchase?

2. Irving sold Blackacre (investment real estate) for $50,000 cash and the buyer assumed Irving's $17,000 mortgage on the property. Irving paid a realtor commission of $2,000 on the sale. What is Irving's recognized gain or loss on the sale if Blackacre has an adjusted basis of:

a. $63,000
b. $32,000

3. Phillip exchanges a building valued at $500,000 for land also valued at $500,000 in a qualifying like-kind exchange. That building has a basis of $230,000. What are Peter's recognized gain or loss and his basis in the land?

Please use Excel.

Solution Summary

This solution illustrates realized vs recognized gain on sale, adjusted basis, and like kind exchange.

$2.19