Sarah exchanges a building and land (used in her business) for Tyler's land and building...
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Accounting
Sarah exchanges a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics:
Adjusted Basis
Fair Market Value
Sarahs real property
$120,000
$300,000
Tylers real property
60,000
220,000
Equipment
50,000
80,000
a. Sarah's recognized gain is $________. Her adjusted basis in the land and building she acquired from Tyler is $_____, and her adjusted basis in the equipment is $____.
b. Tyler's recognized gain is $_______, and his adjusted basis in the land and building he acquired from Sarah is $__________.
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