Joan reed exchanged commercial real estate that she owned, Ask an Expert

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Joan Reed exchanged commercial real estate that she owned for other commercial real estate plus cash of $50,000. The following additional information pertains to this transaction:

Property given up by Reed:
Fair Market Value $500,000
Adjusted Basis 300,000

Property received by Reed:
Fair Market Value 450,000

What amount of gain should be recognized in Reed's income tax return?
a. $200,000
b. $150,000
c. $50,000
d. $0

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9415444

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