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Redoubt LLC Exchanged an Office Building Used in Its Business

Question 132

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Redoubt LLC exchanged an office building used in its business for a rental house. Redoubt originally purchased the building for $80,110, and it had an adjusted basis of $52,890 at the time of the exchange. The rental house had a fair market value of $62,110. Redoubt also received $7,055 of cash in the transaction. What is Redoubt's gain or loss recognized on the exchange? What is Redoubt's basis in the rental house?

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