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lord [1]
3 years ago
11

Julie transferred a building with an adjusted basis of $240,000 for another building with a fair market value of $350,000 and $2

5,000 in cash. The exchange qualified as a like-kind exchange. The realized gain on the exchange was $
Business
1 answer:
NARA [144]3 years ago
7 0

Answer:

$135,000

Explanation:

The realized gain can be calculated as under:

Realized Gain = Market Value received    -   Adjusted Basis

Here

Market Value received is $375,000 (350k + 25k)

Adjusted Basis $240,000

By putting values, we have:

Realized Gain = $375,000 - $240,000 = $135,000

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Explanation:

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A very clear example is to suspend an exam. If you have to explain to someone why you have suspended the exam, you probably mean that it was very difficult, that you had not rested, did not have time to study or even that the teacher suspended you.

Now imagine that it is another person who suspends and you have approved. Surely if you have to explain why you have suspended you will explain that it is a bit vague, that you have not studied enough and even that you were not interested in approving.

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The attached file also support this statement.

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2 years ago
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