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Gwar [14]
3 years ago
13

Leker exchanged real property that was used exclusively for business and had an adjusted tax basis of $20,000 for new real prope

rty. The new real property had a fair market value of $10,000, and Leker also received $3,000 in cash. What was Leker tax basis in the acquired real property?
Business
1 answer:
goldfiish [28.3K]3 years ago
6 0

Answer:

$17,000

Explanation:

Leker's Old Property Adjusted Tax Basis = $20,000

To calculate the new basis, subtract the $3000 recieved in cash from the new property.

New Tax Basis; $20,000-$3,000= $17,000

The transaction of Leker to exchange a real property for another led to a loss: Meaning a Property of $20,000 was exchanged for a property of $10,000+ $3,000 (cash)= $13,000

The Loss on the transaction= $20,000- $13,000= $7,000

Due to the loss no gain is recognized and the $3000 will reduce the basis for his new asset.

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3 years ago
On October 31, 2015, Damon Company's general ledger shows a checking account balance of $8,445. The company's cash receipts for
solniwko [45]

Answer:

Explanation:

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Answer:

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