Bee Owns Land Bravo With An Adjusted Basis Of 60 And A Fair Market Value Of 100

Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100.

Bravo is subject to a mortgage of $4. B sells the land to Dell who gives Bee $96 in cash

and assumes the mortgage.

a) Does Bee realize gain/loss on the transaction and if yes, how much?

b) Does Bee recognize gain/loss on the transaction and if yes, how much?

2. Assume there is no mortgage and Bee swaps Bravo to Dell for land (Waterland) worth

$90, and $10 cash.

a) Does Bee realize gain/loss on the transaction and if yes, how much?

b) Does Bee recognize gain/loss on the transaction and if yes, how much?

c) What is Bee’s basis in Waterland?

3. Assume there is no mortgage but Waterland is worth $45 so Bee gets Waterland plus

$55 in cash.

a) Does Bee realize gain/loss on the transaction and if yes, how much?

b) Does Bee recognize gain/loss on the transaction and if yes, how much?

c) What is Bee’s basis in Waterland?

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