Kevin exchanges an office building used in his business for another office building worth $200,000 plus $30,000 c FMV of Kevin's old building is $280,000 (basis $150,000) and it is subject to a mortgage of $50,000. The mortgage assumed by the other party.
a. What is the amount of gain realized by Kevin?
b. What is the amount of gain recognized by Kevin?
c. What is the basis of the new building to Kevin?

Question

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The Answer of Kevin exchanges an office building used in his business for another office building worth $200,000 plus $30,000 c FMV of Kevin's old building is $280,000 (basis $150,000) and it is subject to a mortgage of $50,000. The mortgage assumed by the other party.
a. What is the amount of gain realized by Kevin?
b. What is the amount of gain recognized by Kevin?
c. What is the basis of the new building to Kevin?

Kevin Exchanges an Office Building Used in His Business for Another