Sammy exchanges equipment 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 Equipment $44,000 $60,000 $50,000 $43,000 Cash $ 5,000 $ 5,000 Liability on equipment $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?

Question

Sammy exchanges equipment 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 ​ Equipment $44,000 $60,000 $50,000 $43,000 ​ Cash $ 5,000 $ 5,000 ​ Liability on equipment $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?

Quizplus · Accepted Answer

The Answer of Sammy exchanges equipment 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 ​ Equipment $44,000 $60,000 $50,000 $43,000 ​ Cash $ 5,000 $ 5,000 ​ Liability on equipment $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 Equipment Used in His Business in a Like-Kind