A Business land
| Scenario: Gina Smith exchanges a business land with an adjusted basis of $400,000 and a fair market value of $700,000 for Jennifer Lopez’s office building worth $600,000 and $100,000 cash. Jennifer had an adjusted basis of $450,000 in the building. |
| Answer the questions in the space provided below. |
| 1. What is Gina’s realized and recognized gain or loss and the basis in the office building? |
| 2. What is Jennifer’s realized and recognized gain or loss and the basis in the business land? |
| 3. Assume no cash was received by Gina and the office building was worth $700,000. What would be Gina’s realized and recognized gain or loss and the basis in the office building |
