ACCOUNTING-Dena owns 500 acres of farm land in southeastern Maryland
Offered Price: $ 4.00 Posted By: Posted on: 11/26/2015 03:19 PM Due on: 12/26/2015
Dena owns 500 acres of farm land in southeastern Maryland. Her adjusted basis for the land is $480,000 and there is a $400,000 mortgage on the land. She exchanges the land for an office building owned by Chris in Newark, New Jersey. The building has a fair market value of $900,000. Chris assumes Dena’s mortgage on the land. What is the amount of Dena’s recognized gain or loss on the exchange?