Odintz Traded Land for Land

question 63

Essay

Odintz traded land for land. Odintz originally purchased its land for $150,000. The land received was purchased for $200,000 and was subject to a mortgage of $50,000 that was paid off before the transfer. The fair market value of the new land is $240,000. What is Odintz's adjusted basis in the new land after the exchange?

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Definitions:

Labor Market

The supply and demand for labor, where employers seek to hire workers, and individuals offer their work for wages.

Median Earnings

The middle value of earnings in a given demographic, geographical area, or profession, with an equal number of individuals earning more and less than this amount.

Labor Market

A marketplace where employers find workers and workers find jobs, characterized by the supply and demand for labor.

Price

The price one must pay to obtain a specific good or service.