Use the Lesson 3 template down below to complete both parts of the case study.
- Be sure to read the instructions and complete all template sections.
- If required, calculations must be displayed on the Excel template.
Part 1
Scenario
Gina Smith exchanges a business land with an adjusted basis of $400,000 and a fair market value of $700,000 for Jennifer Lopez’s office building worth $600,000 and $100,000 cash. Jennifer had an adjusted basis of $450,000 in the building.
- Use the scenario data to answer the questions within the Excel template to complete Part 1.
Part 2
Scenario
Frank Cortez’s business property with an adjusted basis of $160,000 is condemned by local authorities. He receives a $240,000 condemnation award.
- Answer the questions in the Excel template based on the scenario information to complete Part 2.