New Era LLC.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
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New Era LLC. traded Land A for Land B. New Era's adjusted basis for Land A was $6,000.
The fair market value of Land B is $4,000. New Era received $500 cash and Land B in
exchange for Land A. What is New Era's recognized gain or loss in this exchange?
OA. No gain of loss.
OB. A gain of $500.
OC. A gain of $1,500.
O D. A loss of $500.
OE. A loss of $1,500.
Transcribed Image Text:New Era LLC. traded Land A for Land B. New Era's adjusted basis for Land A was $6,000. The fair market value of Land B is $4,000. New Era received $500 cash and Land B in exchange for Land A. What is New Era's recognized gain or loss in this exchange? OA. No gain of loss. OB. A gain of $500. OC. A gain of $1,500. O D. A loss of $500. OE. A loss of $1,500.
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