In a § 1031 like-kind exchange, Rafael exchanges a business building that originally cost $310,800. On the date of the exchange, the building given up has an adjusted basis of $124,320 and a fair market value of $170,940. Rafael pays $25,641 and receives a building with a fair market value of $196,581. Compute the following. If an amount is zero, enter "0". a. Rafael's realized gain on the exchange is $ b. Rafael's recognized § 1031 gain is $ c. Rafael's unrecaptured § 1250 gain of $ 0 X. X is carried over to the replacement property

In a § 1031 like-kind exchange, Rafael exchanges a business building that originally cost $310,800. On the date of the exchange, the building given up has an adjusted basis of $124,320 and a fair market value of $170,940. Rafael pays $25,641 and receives a building with a fair market value of $196,581. Compute the following. If an amount is zero, enter "0". a. Rafael's realized gain on the exchange is $ b. Rafael's recognized § 1031 gain is $ c. Rafael's unrecaptured § 1250 gain of $ 0 X. X is carried over to the replacement property

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

In a § 1031 like-kind exchange, Rafael exchanges a business building that originally cost $310,800. On the date of the exchange, the
building given up has an adjusted basis of $124,320 and a fair market value of $170,940. Rafael pays $25,641 and receives a building
with a fair market value of $196,581.
Compute the following. If an amount is zero, enter "0".
a. Rafael's realized gain on the exchange is $
b. Rafael's recognized § 1031 gain is $
c. Rafael's unrecaptured § 1250 gain of $
0.
X.
X is carried over to the replacement property

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Step 1: Provisions of Section 1031

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