Summer exchanges an office building used in her business for another office building. Summer's office building FMV of $250,000 (basis of $180,000). The FMV of the new building is $300,000, and it is subject to a mortgage of $ which is assumed by Summer. Summer also pays the other party $40,000 cash.
a. What is the amount of gain realized by Summer?
b. What is the amount of gain recognized by Summer?
c. What is the basis of the new building to Summer?

Question

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The Answer of Summer exchanges an office building used in her business for another office building. Summer's office building FMV of $250,000 (basis of $180,000). The FMV of the new building is $300,000, and it is subject to a mortgage of $ which is assumed by Summer. Summer also pays the other party $40,000 cash.
a. What is the amount of gain realized by Summer?
b. What is the amount of gain recognized by Summer?
c. What is the basis of the new building to Summer?

Summer Exchanges an Office Building Used in Her Business for Another