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Taxpayer A transferred income-producing real property X with an adjusted basis of $80,000, fair market
value of $250,000, and subject to a mortgage of $100,000 to Taxpayer B, in exchange for real
property Y, which A intends to use for the production of income, with a fair market value of $200,000. In
addition to property X, A also gave $30,000 in cash and stock with a fair market value of $20,000 and
basis of $60,000.
A. How much is the gain or loss realized by A on property X?
B.How much is the gain or loss realized by A on the stock?
C. How much is the gain or loss recognized by A on the disposition of property X?
D. How much is the gain or loss recognized by A on the disposition of the stock?
E. What is the basis of property Y in A's hands?
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