Tyson had undeveloped investment land with a basis of $200,000 that he wanted to sell and exchange into a warehouse to be used in his business. The land was encumbered by a $40,000 mortgage. The land was worth $350,000. He found a buyer willing to pay him $300,000 cash and assume the $50,000 mortgage.
He transferred the land to a third party accomodator on April 1st of the current year and the sale was closed with the buyer. On May 10th with the help of a commercial real estate agent Tyson identified two suitable warehouses. On August 10th he made an offer on the first building which was rejected. On August 13th an offer was accepted on the second warehouse. The second warehouse sold for $325,000.
On September 23rd the accomodator transferred $325,000 cash (300,000 from the original property plus 25,000 from a mortgage Tyson took on the property) to the seller of the second warehouse and conveyed title to the warehouse to Tyson.
A. What is Tyson's amount realized?
B. What is Tyson's gain realized?
C. What is Tyson's basis in the new warehouse?