Use the Lesson 3 template down below to complete both parts of the case study.
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.
Frank Cortez’s business property with an adjusted basis of $160,000 is condemned by local authorities. He receives a $240,000 condemnation award.