What is Mary basis of the newly acquired office building

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Question - Mary owns an apartment building that has an adjusted basis of $1,280,000 but subject to a mortgage of $420,000. Mary transfers the apartment building to Gary, and receives from Gary $330,000 in cash and an office building with a fair market value of $780,000 at the time of the exchange. Gary assumes the $420,000 mortgage on the apartment. The transfer is a like-kind exchange.

Required -

a) What is Mary's realized gain/ loss?

b) What is Mary' recognized gain/loss?

c) What is Mary's basis of the newly acquired office building?

Reference no: EM132527879

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