In 2013,Penny exchanges an investment property in Santa Barbara with a mountain view for a lot with an ocean view in a qualifying like-kind exchange.Penny's basis in the land given up is $100,000 and the property has a fair market value of $250,000.In exchange for her property,Penny receives land with a fair market value of $200,000 and cash of $20,000.In addition,the other party to the exchange assumes a mortgage loan on Penny's property of $30,000.
a.Calculate Penny's realized gain,if any,on the exchange.
b.Calculate Penny's recognized gain,if any,on the exchange.
c.Calculate Penny's basis in the property received.

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The Answer of In 2013,Penny exchanges an investment property in Santa Barbara with a mountain view for a lot with an ocean view in a qualifying like-kind exchange.Penny's basis in the land given up is $100,000 and the property has a fair market value of $250,000.In exchange for her property,Penny receives land with a fair market value of $200,000 and cash of $20,000.In addition,the other party to the exchange assumes a mortgage loan on Penny's property of $30,000.
a.Calculate Penny's realized gain,if any,on the exchange.
b.Calculate Penny's recognized gain,if any,on the exchange.
c.Calculate Penny's basis in the property received.

In 2013,Penny Exchanges an Investment Property in Santa Barbara with a Mountain