Babex Inc. and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Pursuant to the exchange, OMG assumed the mortgage on the Babex property. Compute Babex's gain recognized on the exchange and its tax basis in the property received from OMG.

Question

Babex Inc. and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged.  Pursuant to the exchange, OMG assumed the mortgage on the Babex property. Compute Babex's gain recognized on the exchange and its tax basis in the property received from OMG.

Quizplus · Accepted Answer

The Answer of Babex Inc. and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged.  Pursuant to the exchange, OMG assumed the mortgage on the Babex property. Compute Babex's gain recognized on the exchange and its tax basis in the property received from OMG.

Babex Inc and OMG Company Entered into an Exchange of Real