dkrkdjfm4j3 Problem 11-61 (LO 11-6) (Algo)Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. Asummary of the exchange is as follows:TransferredWarehouseLandMortgage on warehouseCashFMV$ 470,00075,000OriginalBasis>AccumulatedDepreciation$ 279,00075,000$ 82,50045,25040,00040,000Assets ReceivedLandFMV$539,750What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange?DescriptionRealized gainAmount$ 273,500Recognized gain$5,250Adjusted basis in new property$ 261,000

To determine realized gain: Realized gain= $273,500 Total amount realized = FMV of land received+…

Answered: Problem 11-61 (LO 11-6) (Algo) Prater…

SWFT Individual Income Taxes

43rd Edition

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Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 53P

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