Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2012, the f
irst year of the corporation's existence:- sold 10,000 shares of common stock for $18 per share- issued 10,000 share of common stock in exchange for a patent valued at $200,000At the end of Berry's first year, total paid-in capital amounted to...
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Given :
Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.
To Find :
What is Bud's recognized gain or loss.
Solution :
This is a transaction of like kind exchange.
So, gain or loss to be recognized is :
Therefore, option B) is correct.