a. Calculate Carlton's realized and recognized gain or loss from the exchange with his son and on Carlton's subsequent sale of the land to a real estate agent on July 19, 2016, for $329,500. Recognized Gain on Exchange Total Recognized Gain b. Calculate Carlton's realized and recognized gain or loss from the exchange with his son if Carlton does not sell the land received from his son, but his son sells the land received from Carlton on July 19, 2016. Calculate Carlton's basis for the land on November 1, 2015, and July 19, 2016. Recognized Gain on Exchange Total Recognized Gain Date Nov. 1, 2015 July 19, 2016 Carlton's Basis

a. Calculate Carlton's realized and recognized gain or loss from the exchange with his son and on Carlton's subsequent sale of the land to a real estate agent on July 19, 2016, for $329,500. Recognized Gain on Exchange Total Recognized Gain b. Calculate Carlton's realized and recognized gain or loss from the exchange with his son if Carlton does not sell the land received from his son, but his son sells the land received from Carlton on July 19, 2016. Calculate Carlton's basis for the land on November 1, 2015, and July 19, 2016. Recognized Gain on Exchange Total Recognized Gain Date Nov. 1, 2015 July 19, 2016 Carlton's Basis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Carlton holds undeveloped land for investment. His adjusted basis in the land is $166,200, and the FMV is $277,000. On November 1, 2015, he exchanges this land for land owned by his son, who is 31 years old. The appraised value of his son's land is $268,000 with a
basis of $250,000. SHOW WORK
a. Calculate Carlton's realized and recognized gain or loss from the exchange with his son and on Carlton's subsequent sale of the land to a real estate agent on July 19, 2016, for $329,500.
Recognized Gain on Exchange.
Total Recognized Gain
b. Calculate Carlton's realized and recognized gain or loss from the exchange with his son if Carlton does not sell the land received from his son, but his son sells the land received from Carlton on July 19, 2016. Calculate Carlton's basis for the land on November 1, 2015,
and July 19, 2016.
Recognized Gain on Exchange
Total Recognized Gain
Date
Nov. 1, 2015
July 19, 2016
Carlton's Basis

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