Reference no: EM133168346

Question - Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $79,500, and it has claimed $41,200 of depreciation expense against the building.

Required -

a. Assuming that Hauswirth receives $55,700 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale.

b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $55,700, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

c. Assuming that Hauswirth receives $34,000 in cash in year 0 and a $96,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1.