Determine the realized, recognized, and postponed gain or loss and the new basis

Question

Determine the realized, recognized, and postponed gain or loss and the new basis for each of the following like-kind exchanges.

If an amount is zero, enter "0".

This is what I have so far:

Adjusted Basis ofBoot Given Fair Market Value Boot Received Old Machine of New Asset $7,000 14,000 3,000 15,000 10,000 17,000 $12,000 15,000 8,000 29,000 11,000 14,000 $0 2,000 7,000 $4,000 500 0 1,000 Adjusted Basis of Old Machine Gain/Loss Realized Recognized Postponed New Basis Gain 5,000 1,000 V 5,000 X $7,000 $14,000 $3,000 $15,000 $10,000 $17,000 4,000 2,000 X 6,500 X 12,000X 15,000X 8,000X 9,000 | 3,000 X Loss Gain Gain Loss 11,500 X 29,000 X 11,000 X 14,000X 14,000 0 14,000 2,000 1,000 1,000 3,000 3,000

Explanation / Answer

a. Adjusted basis of Old machine ($7,000) Gain Fair Market Value $12,000 Boot Received $4,000 Realized      =sum(F2:F6) $9,000 Recognized $4000(Boot Received) $4,000 Postponed $9000-$4000 Realized- recognized New basis $5,000 Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party $7000-$4000+$7000 $        4,000 B Old Machine ($14,000) New machine $15,000 Boot Given ($2,000) Loss Realized      =sum(F2:F6) ($1,000) Recognized $14,000-$15,000+ $2000(Boot given) ($3,000) Postponed $1,000 New Besis Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party          $14,000+$2000-$14,000 $        2,000 c. Adjusted basis of Old machine ($3,000) Loss Fair Market Value $8,000 Boot Given ($7,000) Boot Recived 500 Realized      =sum(F2:F6) ($1,500) Recognized $3000(old)-$8000(new)+ $7000(Boot given)-Boot recived($500) $11,500 Postponed $10,000 (Realized gain - Recognized loss) New basis Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party     =3000+7000-500+3000 $     12,500 d Adjusted basis of Old machine ($15,000) Gain Fair Market Value $29,000 Boot Given $0 Boot Recived 0 Realized      =sum(F2:F6) $14,000 Recognized $0 Postponed $14,000 (Realized gain - Recognized loss) New basis Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party     =3000+7000-500+3000 $0 e Adjusted basis of Old machine ($10,000) Gain Fair Market Value $11,000 Boot Given $0 Boot Recived $1,000 Realized      =sum(F2:F6) $2,000 Recognized $1,000 Postponed $1,000 (Realized gain - Recognized loss) New basis Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party     =10000+1000-10,000 $1,000 F Adjusted basis of Old machine ($17,000) Loss Fair Market Value $14,000 Boot Given $0 Boot Recived Realized      =sum(F2:F6) ($3,000) Recognized $0 Postponed $3,000 (Realized gain - Recognized loss) New basis Original Net Adjusted Basis+ Liabilities assumed + Boot given- Liabilities assumed by another party     =17000-17,000 $0

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