Chaney exchanges land used in her business for another parcel of land.The adjusted basis for her land is $32,000.
The land she will receive has a fair market value of $33,000.In addition, Chaney receives cash of $4,000.
a.Calculate Chaney's realized and recognized gain or loss.
b.Calculate Chaney's basis for the assets she received.

Question

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The Answer of Chaney exchanges land used in her business for another parcel of land.The adjusted basis for her land is $32,000.
The land she will receive has a fair market value of $33,000.In addition, Chaney receives cash of $4,000.
a.Calculate Chaney's realized and recognized gain or loss.
b.Calculate Chaney's basis for the assets she received.

Chaney Exchanges Land Used in Her Business for Another Parcel