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What is the basis of the building

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Question 1 - Zeus purchased a business building with a fair market value of $60,000 and a business auto with a fair market value of $20,000. Both were acquired as a bulk bargain purchase, for a total cost of $48,000. What is the basis of the building?

Question 2 - On October 1 of the current year, Don Anderson exchanged and apartment building with an adjusted basis of $375,000 {FMV $600,000} and subject to a mortgage of $100,000 (to be assumed by the new owner} and $25,000 cash for another apartment building with a fair market value of $475,000. What is the amount of gain that Anderson is to recognize.

Reference no: EM132971942

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