Question
In: Accounting
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows:
| Transferred | FMV | Original Basis |
Accumulated Depreciation |
||
| Warehouse | $ | 392,500 | $ | 311,000 | $94,000 |
| Land | 90,500 | 90,500 | |||
| Mortgage on warehouse | 50,500 | ||||
| Cash | 23,000 | 23,000 | |||
Assets Received FMV
Land $455,500
What is Prater’s realized and recognized gain on the exchange and its basis in the assets it received in the exchange?
|
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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