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?

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Definitions:

Fixed-Ratio

In operant conditioning, a reinforcement schedule that rewards a response only after a specified number of responses.

Partial Reinforcement

A conditioning strategy where only some of the responses made are rewarded, which can lead to more resistant behavioral patterns.

Research Suggests

A phrase commonly used to indicate that studies or data indicate a certain conclusion or trend.

Consistently

Consistently means acting or behaving in the same way over time, especially to maintain a standard or repeat a specific outcome.