Perry Inc.and Dally Company entered into an exchange of real property.Here is the information for the properties to be exchanged. Pursuant to the exchange,Perry assumed the mortgage on the Dally property,and Dally assumed the mortgage on the Perry property.Compute Dally's gain recognized on the exchange and its tax basis in the property received from Perry.
A)$30,000 gain recognized; $313,000 basis in the Perry property.
B)100,000 gain recognized; $383,000 basis in the Perry property.
C)$30,000 gain recognized; $283,000 basis in the Perry property.
D)None of the choices are correct.

Question

Perry Inc.and Dally Company entered into an exchange of real property.Here is the information for the properties to be exchanged.  Pursuant to the exchange,Perry assumed the mortgage on the Dally property,and Dally assumed the mortgage on the Perry property.Compute Dally's gain recognized on the exchange and its tax basis in the property received from Perry.
A)$30,000 gain recognized; $313,000 basis in the Perry property. 
B)100,000 gain recognized; $383,000 basis in the Perry property. 
C)$30,000 gain recognized; $283,000 basis in the Perry property. 
D)None of the choices are correct.

Quizplus · Accepted Answer

The Answer of Perry Inc.and Dally Company entered into an exchange of real property.Here is the information for the properties to be exchanged.  Pursuant to the exchange,Perry assumed the mortgage on the Dally property,and Dally assumed the mortgage on the Perry property.Compute Dally's gain recognized on the exchange and its tax basis in the property received from Perry.
A)$30,000 gain recognized; $313,000 basis in the Perry property. 
B)100,000 gain recognized; $383,000 basis in the Perry property. 
C)$30,000 gain recognized; $283,000 basis in the Perry property. 
D)None of the choices are correct.

Perry IncAnd Dally Company Entered into an Exchange of Real Property