Cooper and Dane exchanged properties with each other. Cooper exchanged a commercial building and land with...

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Accounting

Cooper and Dane exchanged properties with each other. Cooperexchanged a commercial building and land with a basis of $200,000and a fair market value of $320,000. The property exchanged byCooper was also subject to a $180,000 liability that was assumed byDane in the exchange. In addition to the liability assumption, Danegave Cooper a smaller commercial building in a different location.That building had a fair market value of $250,000 and an adjustedbasis to Dane of $190,000. The property exchanged by Dane wassubject to a $140,000 liability that was assumed by Cooper in theexchange. To even up the exchange, Dane also gave Cooper $30,000 incash.
Show your work below the questions. Provide labeled andsufficiently described answers to the questions.
1) What is Cooper’s realized gain or loss?
2) What is Dane’s realized gain or loss?
3) What is Cooper’s recognized gain or loss?
4) What is Dane’s recognized gain or loss?
5) What is the basis of the like-kind property acquired byCooper?
6) What is the basis of the like-kind property acquired byDane?

Answer & Explanation Solved by verified expert

4.4 Ratings (831 Votes)

1 Coopers Realized Profit loss Coopers Realized Profit loss Particulars Amount Amount Fair Market Value of Danes Property 250000 Liability on Danes Property 140000 Net FMV of Danes Property 110000 Cash given by Dane to Cooper 30000 Total Benefit Received by Cooper 140000 Fair Market Value of Coopers Property 320000 Liability on Coopers Property 180000 Net FMV of Coopers Property 140000 Total Benefit Received by Dane 140000 Realized Profit for Cooper 0 Explanation Inorder to find out the realized Gainloss of the transaction we must compare the fair market value of the properties To find out whether cooper has Gained any profit we must compare the Fair market Value of the Benefit received by cooper and the Fair market value of the Benefit received by Dane Fair market Value of the Benefit received by cooper It is nothing See Answer

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Cooper and Dane exchanged properties with each other. Cooperexchanged a commercial building and land with a basis of $200,000and a fair market value of $320,000. The property exchanged byCooper was also subject to a $180,000 liability that was assumed byDane in the exchange. In addition to the liability assumption, Danegave Cooper a smaller commercial building in a different location.That building had a fair market value of $250,000 and an adjustedbasis to Dane of $190,000. The property exchanged by Dane wassubject to a $140,000 liability that was assumed by Cooper in theexchange. To even up the exchange, Dane also gave Cooper $30,000 incash.Show your work below the questions. Provide labeled andsufficiently described answers to the questions.1) What is Cooper’s realized gain or loss?2) What is Dane’s realized gain or loss?3) What is Cooper’s recognized gain or loss?4) What is Dane’s recognized gain or loss?5) What is the basis of the like-kind property acquired byCooper?6) What is the basis of the like-kind property acquired byDane?