Justin Trades an Office Building Located in Michigan to John

question 9

Short Answer

Justin trades an office building located in Michigan to John for an apartment complex located in North Carolina.Details of the two properties:
$\begin{array}{lrr}&\text { Justin } & \text { John } \\& \underline {\text { Michigan } } & \underline { \text { N. Carolina } } \\\text { Fair market value } &\$ 9,000,000 & \$ 4,000,000 \\\text { Adjusted basis } &3,000,000 & 3,000,000 \\\text { Liabilities transferred with property } &2,000,000 & -0-\end{array}$
In addition,John pays Justin $3,000,000 cash as part of this transaction.What is the gain (loss)recognized by John in this transaction and what is his basis in the Michigan property?
$\begin{array}{ll}\text { Gain Recognized } & \text { Adjusted B asis } \\a.\$ 1,000,000 & \$ 9,000,000 \\b.\$-0- & \$ 8,000,000 \\c.\$ 1,000,000 & \$ 6,000,000 \\d.\$-0- & \$ 9,000,000\end{array}$
e. Some other amounts

---

Definitions:

Future Resource Needs

Anticipated requirements of an organization for assets, staff, or materials in order to meet its strategic goals.

Forecasting

Predicting future events or trends, often using historical data and analysis methods.

Human Resource Planning

The process by which an organization ensures that it has the right number and kind of people, at the right place and time, capable of effectively and efficiently completing tasks that help the organization achieve its overall objectives.

Attrition

The reduction in the workforce due to employees leaving the company through natural means such as retirement or resignation, not including layoffs.