1. Brown exchanged stock in the Green Company held for investment purposes with an adjusted...
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Accounting
1. Brown exchanged stock in the Green Company held for investment purposes with an adjusted basis of $7,000 for $3,000 in cash and stock in the White Company to be held for investment purposes with a fair market value of $8,000.
2. He exchanged a piece of land in Illinois used in his business with an adjusted basis of $75,000 for $25,000 in cash and a piece of land in Wisconsin to be held for investment purposes with a fair market value of $65,000.
1. Determine the amount of gain or loss to be recognized on Browns
2020 tax return. Be sure to state whether each exchange is a
like-kind exchange or not a like-kind exchange.
2. Determine the basis of each of the assets that Brown received in
the exchanges.
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