Justin trades an office building located in Michigan to John for an apartment complex located in North Carolina.Details of the two properties:
In addition,John pays Justin $3,000,000 cash as part of this transaction.What is the gain (loss)recognized by John in this transaction and what is his basis in the Michigan property?
Gain Recognized Adjusted Basis

A)$1,000,000 $9,000,000
B)$ -0- $8,000,000
C)$1,000,000 $6,000,000
D)$ -0- $9,000,000
E)Some other amounts

Question

Justin trades an office building located in Michigan to John for an apartment complex located in North Carolina.Details of the two properties:
In addition,John pays Justin $3,000,000 cash as part of this transaction.What is the gain (loss)recognized by John in this transaction and what is his basis in the Michigan property?
Gain Recognized Adjusted Basis

A)$1,000,000 $9,000,000 
B)$ -0- $8,000,000 
C)$1,000,000 $6,000,000 
D)$ -0- $9,000,000 
E)Some other amounts

Quizplus · Accepted Answer

The Answer of Justin trades an office building located in Michigan to John for an apartment complex located in North Carolina.Details of the two properties:
In addition,John pays Justin $3,000,000 cash as part of this transaction.What is the gain (loss)recognized by John in this transaction and what is his basis in the Michigan property?
Gain Recognized Adjusted Basis

A)$1,000,000 $9,000,000 
B)$ -0- $8,000,000 
C)$1,000,000 $6,000,000 
D)$ -0- $9,000,000 
E)Some other amounts

Justin Trades an Office Building Located in Michigan to John