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T11F-Chp-12-3-Like-Kind Exchanges-Section 1031--2011

T11F-Chp-12-3-Like-Kind Exchanges-Section 1031--2011 - Tab...

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Tab: 1. Problems File: 09305e7dfde0630c5c113f612ef4005dedcff836.xls Page 1 of 2 Like-Kind Exchanges (A CPA Exam Question, with Additional Parts) (CPA Exam Nov.1990) Joan exchanged (1) commercial real estate (land) that she owned for (2) other commercial real estate (land), (in some options, cash was given or received). Option A Option B Option C Option D Option E Property given by Joan Adjusted basis of land given $300,000 $300,000 $300,000 $300,000 $300,000 Fair market value of land given $500,000 $450,000 $500,000 $500,000 $700,000 Cash Given by Joan $50,000 Property received by Joan FMV of "NEW" land received $500,000 $500,000 $450,000 $280,000 $280,000 Cash Received by Joan $50,000 $220,000 $220,000 Joan's mortgage assumed by other party $200,000 Is each party receiving and giving equal value? Summary (Details below) Option A Option B Option C Option D Option E 1 Joan's realized gain? 1001 2 Joan's recognized gain? 1031(a), (b) 3 Joan’s basis in land received 1031(d) What Joan receives - FMV Rec'd 4 Joan Receives Land-FMV 5 Joan is relieved of debt 6 Joan receives cash 7 Joan receives other asset 8 Total value received by Joan What is Joan's Gain?
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