Essay
Robbie and Mike exchange rental houses in a qualified like-kind exchange. Robbie's old rental house, which originally cost $142,000, has an adjusted basis of $126,000. His rental house is worth $132,000. Since the rental house Mike is trading is worth only $127,000 (Mike's basis is $118,000), Mike will even up the exchange by giving Robbie $5,000 in cash.
a.What is Robbie's realized gain (loss) on the rental house?
b.What is Robbie's recognized gain (loss) on the rental house?
c.What is the character of Robbie's gain or loss on the rental house?
d.What is Robbie's basis in his new rental house?
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a. Robbie's amount realized is 
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Correct Answer:
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a. Robbie's amount realized is
. It c...View Answer
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