Katie traded computer equipment used in her business to a computer dealer for some new...
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Katie traded computer equipment used in her business to a computer dealer for some new computer equipment. Katie originally purchased the computer equipment for S15,000 and it had an adjusted basis of S11,000 at the time of the exchange. The computer equipment was worth S12,000 at the time of the exchange. Katie also received a used copier worth $2,000 in the transaction. Realized Gain/Loss Recognized Gain/Loss Basis in New Asset Holiday exchanged an office building used in its business for a rental house. Holiday originally purchased the building for $80,000 and it had an adjusted basis of $53,000 at the time of the exchange. The rental house had a fair market value of $62,000. Holiday also received $7,000 of cash in the transaction. Realized Gain/Loss Recognized Gain/Loss Basis in New Asset Brett sold land he had held for 8 years valued at $210,000 in Year 1. His original basis in the land was S180,000. For the land, Brett received S60,000 in cash in the current year and a note providing S150,000 in the following year Year Realized Gain/Loss Recognized Gain/Loss Basis in New Asset Year 1 Year 2
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