Lyle Lawrence Transfers an Apartment Building with an Adjusted Basis

question 22

Essay

Lyle Lawrence transfers an apartment building with an adjusted basis of $300,000 and a fair market value of
$480,000 for Carl Cushions apartment building (adjusted basis $280,000) with a fair market value of $400,000. Lyle's mortgage of $120,000 is assumed by Carl, whose mortgage of $40,000 is assumed by Lyle. What is the realized and recognized gain or loss for Lyle and Carl, and what are their bases in their acquired buildings?

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Definitions:

Selling

The process of persuading a customer to purchase a product or service.

Flexibility

The quality of being able to change or adapt to new circumstances easily without negative consequences.

Sales

Activities involved in selling goods or services to consumers or businesses.

Objective Measures

Quantifiable data used to evaluate performance or progress, often based on clearly defined criteria unaffected by personal biases or interpretations.