Kevin Exchanges an Office Building Used in His Business for Another

question 89

Essay

Kevin exchanges an office building used in his business for another office building worth $200,000 plus $30,000 cash.The FMV of Kevin's old building is $280,000 (basis $150,000)and it is subject to a mortgage of $50,000.The mortgage is assumed by the other party.
a.What is the amount of gain realized by Kevin?
b.What is the amount of gain recognized by Kevin?
c.What is the basis of the new building to Kevin?

---

Definitions:

Previous Heterosexual Relationships

Past romantic or sexual relationships between individuals of opposite sex.

Same-Sex Parented Homes

Households where children are raised by parents of the same sex, either biological or adoptive.

Never-Married Single Parent

An individual who has a child or children but has never been married, assuming sole responsibility for parenthood.

MBA

A master's degree in business administration, focusing on equipping students with a broad set of managerial skills.