Partner in the dental firm of drillum

Reference no: EM13866472

Dr. Dulbit Drillum, partner in the dental firm of Drillum, Fillum, and Billum, exchanged an office building (market value = $1,538,000) for an apartment building (market value = $1,450,000). Dr. Drillum owes $800,000 on a note secured by a mortgage on his office building, which has an adjusted tax basis of $1,100,000. The building he will receive in the exchange is encumbered with a mortgage that has a balance of $700,000. Dr. Drillum incurs transaction costs of $60,000. Each party agrees to take title subject to the existing mortgage on the substitute building.a. Assuming that cash will be tendered to balance the equities, how much cash is tendered and by whom?

b. What is Dr. Drillum's realized gain on this exchange?

c. What will be Dr. Drillum's substitute tax basis after the exchange?

Reference no: EM13866472

Questions Cloud

How much do you have to deposit today : How much do you have to deposit today so that beginning eleven years from now you can withdraw $10,000 a year for five years (periods 11 to 15) plus an additional amount of $20,000 in that last year (period 15)? Assume an interest rate of 7% p.a.

What is difference between historic and new bsd release unix : What is major difference between the Historic Unix and the new BSD release of Unix System V in terms of Memory Management?

Calculate to know if you should invest : Explain what Risk &Return means in 7 to 10 PP slides.Have to show I understood risk and return well what it is and what you have to calculate to know if you should invest or not how to minimize risk

Power factor are we assuming for the load : For the efficiencies of the transformer, what power factor are we assuming for the load? Also No load losses are the same as the losses in the Core resistance under open circuit test, correct? Also do we have to do test for both the 120 tap and 2..

Partner in the dental firm of drillum : Dr. Dulbit Drillum, partner in the dental firm of Drillum, Fillum, and Billum, exchanged an office building (market value = $1,538,000) for an apartment building (market value = $1,450,000). Dr. Drillum owes $800,000 on a note secured by a mortgage o..

What is an advantage of executing a process in background : What is an advantage of executing a process in background? How do you execute one program from within another?

What is the earning per share : Complete the following:Shares issued ____. Shares outstanding ____. 2. The balance in Additional Paid-in Capital would be $ ____. 3. Earnings per share is $ ____. Round your answer to two decimal places. 4. Total dividends paid on common stock during..

Design a diamond shaped airfoil : Using shock-expansion theory to design a diamond shaped airfoil with semi-angle of ε = 15° and can produce at least 1500 lb of lift force per foot of span with an angle of attack of 5°. The upstream Mach number is 2.0 and the upstream pressure is 2..

User Account

All Pages