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Nick Smith purchased some property in St. Peter, MN, for $150,000 on January 1,2013, which...

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Accounting

Nick Smith purchased some property in St. Peter, MN, for $150,000 on January 1,2013, which he has consistently held for investment purposes. In 2023, this property has a fair market value of $1,000,000. During this year, Nick Smith was approached by a real estate agent representing a client who desires to exchange a parcel of land he owns in Pleasant View, Iowa (current Fair Market Value of $900,000), for the St. Peter, Minnesota property owned by Nick Smiththe Minnesota and Iowa properties are of like-kind. Both parties verbally agreed to enter negotiations to exchange the respective property.
a. What is Nicks realized gain or loss, recognized gain or loss, basis and holding period in the Iowa property if the two parties exchange properties (Minnesota and Iowa)?
b. What is Nicks realized gain or loss, recognized gain or loss, basis and holding period in the Iowa property if the two parties exchange properties (Minnesota and Iowa) and Nick receives $100,000 cash as part of the transaction?

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