1. Valerie exchanges a building and land (used in her business) for Vanessa's land and...
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Accounting
1. Valerie exchanges a building and land (used in her business) for Vanessa's land and building and some equipment (used in her business. The stets have the following values: Provide the final answers to the questions below. Show your work Adjusted Basic Fair Market Value Valerie's real property $110,000 $300,000 Vanessa's real property $70,000 $210,000 Equipment 550,000 $60,000 1. What are Valorie's recognized gain or loss and basis for the land and building and equipment acquired from Vanessa? 2. What are Vanessa's recognized gain or loss and basis for the land and building acquired from Valene? 3. Given Valerie's gain loss and the potential tax implications, do you recommend she makes this exchange? Support your
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