ACCOUNTING-JR exchanges a building valued at $1,000,000 for 10,000 shares
Question # 00123479
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Updated on: 10/25/2015 01:56 AM Due on: 11/24/2015
JR exchanges a building valued at $1,000,000 for 10,000 shares of Jones-Redding Corporation valued $150 per share and the assumption of the $500,000 mortgage on the building held by a local bank. What are the tax consequences for JR if the building has a basis of:
a) $1,200,000
Loss of $___________?
b) $700,000
Gain of $___________?
c) $400,000?
Gain of $___________?
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Rating:
/5
Solution: ACCOUNTING-JR exchanges a building valued at $1,000,000 for 10,000 shares