Question

Texts: X exchanged rental property worth $40,000 with an adjusted basis of $25,000 and no liabilities, for Y's rental property worth $75,000, which had an adjusted basis of $57,000 and which was subject to a mortgage of $40,000. Y also transferred to X $5,000 worth of stock in which Y had an adjusted basis of $3,000. a. What is the total gain realized (include like-kind and gain on other property)? For X: For Y: b. What amount of total gain must each recognize (include like-kind and gain on other property)? For X: For Y: c. What is X's basis in the new rental property? d. What is X's basis in the stock? e. What is Y's basis in the new property?

          Texts: 

X exchanged rental property worth $40,000 with an adjusted basis of $25,000 and no liabilities, for Y's rental property worth $75,000, which had an adjusted basis of $57,000 and which was subject to a mortgage of $40,000. Y also transferred to X $5,000 worth of stock in which Y had an adjusted basis of $3,000.

a. What is the total gain realized (include like-kind and gain on other property)? 
For X: ________ 
For Y: ________

b. What amount of total gain must each recognize (include like-kind and gain on other property)? 
For X: ________ 
For Y: ________

c. What is X's basis in the new rental property?
d. What is X's basis in the stock?
e. What is Y's basis in the new property?

Added by Robert B.

Question

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