Russell Corporation sold a parcel of land valued at $640,000. Its basis in the land was $441,600. For the land, Russell received $81,750 in cash in year 0 and a note providing that Russell will receive $182,000 in year 1 and $376,250 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Russell’s recognized gain in year 0, year 1, and year 2?
Russell Corporation sold a parcel of land valued at $640,000. Its basis in the land was $441,600. For the land, Russell received $81,750 in cash in year 0 and a note providing that Russell will receive $182,000 in year 1 and $376,250 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
b. What is Russell’s recognized gain in year 0, year 1, and year 2?
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Metro Corp. traded Land A for Land B. Metro originally purchased Land A for $50,000 and Land A’s adjusted basis was $25,000 at the time of the exchange.
What is Metro’s realized gain or loss, recognized gain or loss, and adjusted basis in Land B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.)
d. The fair market value of Land A is $45,000 and Metro trades Land A for Land B valued at $40,000 and $5,000 cash. Land A and Land B are like-kind property.
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