Problem - Dondee Realty Company owns an apartment building that has an adjusted basis of $740,000, but is subject to a mortgage of $230,000. Dondee transfers the apartment building to Broadview, Inc. and receives from Broadview $210,000 in cash and an office building with a FMV of $1,000,000 at the time of the exchange. Broadview assumes the $230,000 mortgage on the apartment building

a. What is Dondee's realized gain or loss on the apartment building?

b. What is its recognized gain or loss on the apartment building?

c. What is the basis of the newly acquired office building?

Thomas's automobile, adjusted basis of $12,000, is used exclusively for business and is damaged in an accident. The FMV before the accident is $18,000 and the FMV after is just $950. If the insurance recovery is $16,000, what is Thomas's adjusted basis after the casualty? What is his casualty gain, if any?

Dana owns shares in Yellow Corporation.

Purchase Date    # of Shares  

Basis

Sept 10, 2010   120   

$ 9,000

Feb 17, 2011    140   

$16,000

Nov 15, 2011    160   

$ 8,000

On December 10, 2016 , 100 shares of stock were sold for $16,000. Dana did not specifically identify the shares of stock sold. What is the amount and character of her recognized gain or loss?