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:

E-HR Functions

Electronic human resources functions that leverage internet technology for more efficient and effective HR management practices.

Mobile Technology

A term that refers to the various types of cellular communication technology devices, including smartphones, tablets, and wearable devices.

HR Apps

Software applications designed to facilitate human resources functions, such as recruitment, payroll, and employee management.

Talent Management

A systematic process of attracting, developing, and retaining skilled employees to meet organizational needs.