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Business, 13.12.2019 00:31 dtilton2003
Tom howard and frank peters are good friends (and former college roommates). each owns investment property in the other's hometown (tom lives in kalamazoo, mi; frank lives in austin, tx). to make their lives easier, they decide to exchange the investment properties. under the terms of the exchange, frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). tom's property is subject to a mortgage of $12,000 that will be assumed by frank. if an amount is zero, enter "0". a. what are frank’s and tom’s recognized gains? frank's recognized gain is $, and tom's recognized gain is $.
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