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. Like-kind Exchange Tesco Inc. and MW Company exchanged like-kind...

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Accounting

. Like-kind Exchange
Tesco Inc. and MW Company exchanged like-kind production assets (for 1031
purposes). Teco's asset had an $80,000 FMV and $53,900 adjusted tax basis, and
MW's asset had an $87,500 FMV and a $28,100 adjusted tax basis. Teco paid $7,500
cash to MW as part of the exchange.
1 What is Tescos and MWs realized gain and recognized gain for tax purposes?
2 What is Tescos and MWs tax basis in the newly acquired asset?
[Note: Please show your work on the above, so I can afford partial credit
as applicable. Preference is a well organized spreadsheet.]

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