Answer please 6 Ralph and Sam exchange real estate used in their businesses. Ral
ID: 2332725 • Letter: A
Question
Answer please
6 Ralph and Sam exchange real estate used in their businesses. Ralph's real estate has an adjusted basis of $10,000 and a fair market value of S12,000. Sam's real estate has an adjusted basis of $15,000 and a fair market value of $11,000. Ralph receives (ir addition to the real estate) a truck worth $1000 from Sam. The truck had an adjusted basis at the date of exchange of $500. What is the amount of Sam's recognized gain loss? What is Sam's basis in the real estate received? Recognized Gain or Loss $ Sam's basis in the real estate received $Explanation / Answer
Name
Adjusted Basis
FMV
Ralph
10000
12000
SAM
15500
12000
Real estate
15000
11000
Truck
500
1000
Ralph
FMV of consideration received (11000+1000)
12000
Adjusted basis of real estate given in exchanged
10000
Total gain
2000
SAM
FMV of consideration received
12000
Adjusted basis of real estate given in exchanged
15500
Total Loss
-3500
SAM's basis in real estate received will be
12500
Name
Adjusted Basis
FMV
Ralph
10000
12000
SAM
15500
12000
Real estate
15000
11000
Truck
500
1000