Charlotte exchanges a building she uses in her rental business for a building owned by

Charles (her brother) which she will use in her rental business. The adjusted basis for
Charolettes building is $70,000 and the FMV for 270,000. Which is correct?
Charolette's recognized gain is 200,000 and her basis for the building received is
270,000

Charolettes recognized gain is 200,000 and her basis for the building received is
170,000

Charolette recognized gain is $0 and basis for building recieved is 70,000

Charolette's recognized gian is $0 and basis for building received is 270,0000

None of the above are correct

Charolette recognized gain is $0 and basis for building recieved is 70,000
Alex exchanges a business use machine with an adjuested basis of 47,000 abd a FMV
of 55,000 for another business use machine with a FMV of 51,000 and 4,000 cash.
What is the recognized gain?
0
4,000
8,000
12,000
None of the Above
Answer - 4000

Rupert receives IBM stock as if gift from his uncle. Adjusted basis of stock is 16,000 and
FMV is 20,000. Rupert trades the IBM stock for GE stock with a FMV 17,000 and 3,000
cash. Recognized gains and basis for the GE stock?
0, 16,000
0, 17,000
3,000 16,000
4,000 17,000
None

Answer - 4,000 17,000

Taxpayer J purchased a business building with a FMV of 60,000 and a business auto
with a FMV of 10,000. Both where acquired at a bulk bargain purchase for a total cost of
49,000. What is the Basis?
5,000
7,000
10,000
49,000
Answer - 7000
Mr. M Sold Equipment ued in his business for 11,000. The equipment cost 10,000 and
M has depreciation deductions of 4,000. What is the amount of the gain that should
have been reported under Sec. 1231 and Sec. 1245?

Sec 1231 $5,000 Sec1245 $0

Sec 1231 $3,500 sec. 1245 $1,500

Sec 1231 $1,000 sec 1245 $4,000

Sec 1231 $0 sec 1245 $5,000

Se
Answer - Sec 1231 $1,000 sec 1245 $4,000