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Cristina is trading ocean - front real property used for business purposes for new real property (currently owned by Victoria) to be used in business. Cristina's real property originally cost $35,000 and she has taken $12,000 in depreciation. Cristina's real property is currently worth $20,000 and the new real property owned by Victoria is only worth (FMV) $16, 500. Victoria agrees to give Cristina $3,500 in cash in addition to the new real property. What is Cristina's basis in the new real property received?A. $16, 500B. $19,500C. S 23, 000D. $13,500

Cristina is trading ocean - front real property used for business purposes for new real property (currently owned by Victoria) to be used in business. Cristina's real property originally cost $35,000 and she has taken $12,000 in depreciation. Cristina's real property is currently worth $20,000 and the new real property owned by Victoria is only worth (FMV) $16, 500. Victoria agrees to give Cristina $3,500 in cash in addition to the new real property. What is Cristina's basis in the new real property received?A. $16, 500B. $19,500C. S 23, 000D. $13,500

FINANCIAL ACCOUNTING
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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Cristina is trading ocean - front real property used for business purposes for new real property (currently owned by Victoria) to be used in business. Cristina's real property originally cost $35,000 and she has taken $12,000 in depreciation. Cristina's real property is currently worth $20,000 and the new real property owned by Victoria is only worth (FMV) $16, 500. Victoria agrees to give Cristina $3,500 in cash in addition to the new real property. What is Cristina's basis in the new real property received?A. $16,500B. $19,500C. $ 23,000D. $13,500
Transcribed Image Text:Cristina is trading ocean - front real property used for business purposes for new real property (currently owned by Victoria) to be used in business. Cristina's real property originally cost $35,000 and she has taken $12,000 in depreciation. Cristina's real property is currently worth $20,000 and the new real property owned by Victoria is only worth (FMV) $16, 500. Victoria agrees to give Cristina $3,500 in cash in addition to the new real property. What is Cristina's basis in the new real property received?A. $16,500B. $19,500C. $ 23,000D. $13,500
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