1) Albert is considering two options for selling land for which he has an adjusted...
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Accounting
1) Albert is considering two options for selling land for which he has an adjusted basis of $45,000
and on which there is a mortgage of $90,000. Under the first option, Albert will sell the land for
S110,000 with a stipulation in the sales contract that he liquidate the mortgage before the sale is
complete. Under the second option, Albert will sell the land for $20,000 and the buyer will
assume the mortgage. Calculate Albert's recognized gain under both options.
3) Porter exchanges land used in his business in a like-kind exchange. The property exchanged is as
follows:
Property Surrendered Property Received
Adi. Basis FMV Adi. Basis FMV
Land 50000 60000 28000 30000
Cash 25000 25000 5000 5000
What is Porter's recognized gain or loss?
a.
What is Porter's basis for the assets he received?
b.
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