Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's basis in the property received?
Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's basis in the property received?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.
Transcribed Image Text:I am asking what is the basis of
the property received, NOT GAIN
OR LOSS. FIND BASIS OF THE
PROPERTY RECEIVED ONLY
Molly exchanges land (adjusted
basis of $85,000; fair market value
of $78,000) used in her business
and common stock held for
investment (adjusted basis of
$10,000; fair market value of
$15,000) for a single parcel of
land (fair market value of $93,000)
to be used in her business in a
like-kind exchange. What is
Molly's basis in the property
received?
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