Sammy exchanges land used in his business in a like-kind exchange. The property exchanged is as follows:
Property Surrendered Property Received
Adj. Basis FMV Adj. Basis FMV Land $44,000 $60,000 $50,000 $43,000
Cash $ 5,000 $ 5,000
Liability on land $12,000 $12,000
The other party assumes the liability.
a. What is Sammy's recognized gain or loss?
b. What is Sammy's basis for the assets he received?

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The Answer of Sammy exchanges land used in his business in a like-kind exchange. The property exchanged is as follows:
Property Surrendered Property Received
Adj. Basis FMV Adj. Basis FMV Land $44,000 $60,000 $50,000 $43,000
Cash $ 5,000 $ 5,000
Liability on land $12,000 $12,000
The other party assumes the liability.
a. What is Sammy's recognized gain or loss?
b. What is Sammy's basis for the assets he received?

Sammy Exchanges Land Used in His Business in a Like-Kind