What are Sarah recognized gain or loss

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Problem - Sarah exchanges a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics:

 

Adjusted Basis

Fair Market Value

Sarah's real property

$120,000

$300,000

Tyler's real property

60,000

220,000

Equipment

50,000

80,000

Required -

a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler?

b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Sarah?

Reference no: EM132670915

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