Calculate penny realized gain on the exchange

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Question - In 2021, Penny exchanges a lot in Santa Barbara with a mountain view for a lot with an ocean view in a qualifying like-kind exchange. Penny's basis in the land given up is $100,000 and the property has a fair market value of $250,000. In exchange for her property, Penny receives land with a fair market value of $200,000 and cash of $20,000. In addition, the other party to the exchange assumes a mortgage loan on Penny's property of $30,000.

Required -

a. Calculate Penny's realized gain, if any, on the exchange.

b. Calculate Penny's recognized gain, if any, on the exchange.

c. Calculate Penny's basis in the property received.

Reference no: EM133150195

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