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24 February, 08:46

Mandy and Timothy exchange equipment in a like-kind Exchange. Mandy receives equipment with a fair market value of $28,000 and transfers equipment worth $20,000 (adjusted basis of $14,000) and cash of $8,000. What is Mandy's realized and recognized gain?

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  1. 24 February, 10:35
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    Realized gain of Mandy will be $6000

    Explanation:

    We have given Mandy receives equipment with a fair market value of $28000

    Adjusted basis = $14000+$8000 = $22000

    We have to find the Mandy realized gain

    So Mandy realized gain is given by

    Realized gain = market value - adjusted basis = $28000 - $22000 = $6000

    So the realized gain of Mandy will be $6000
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Home » Business » Mandy and Timothy exchange equipment in a like-kind Exchange. Mandy receives equipment with a fair market value of $28,000 and transfers equipment worth $20,000 (adjusted basis of $14,000) and cash of $8,000.
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