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:

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or obtaining restorative sleep, leading to daytime impairments.

Sleepwalking

A sleep disorder characterized by walking or performing other complex behaviors while in a state of partial arousal from deep sleep.

Population

The total number of individuals or entities within a specified area or a particular group, often used in the context of statistical study.

Sleepwalking Disorder

A sleep disorder that involves repeated episodes of walking or performing other complex behaviors while asleep.