What is Sammy basis for the assets he received

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Question - Sammy exchanges land used in his business in a like-kind exchange. The property exchanged is as follows:

Property Surrendered Property Received

Adj. Basis FMV Adj. Basis FMV

Land $44,000 $60,000 $50,000 $43,000

Cash $ 5,000 $ 5,000

Liability on land $12,000 $12,000

The other party assumes the liability.

Required -

a. What is Sammy's recognized gain or loss? Explain your answer.

b. What is Sammy's basis for the assets he received?

Reference no: EM132769850

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