please answer both parts:)Homework Answers
4) Shara's adjusted basis or outside basis of the exchange = Basis of Goat farm - Mortgage associated with goat farm = $ 200,000 - $ 50,000 = $ 150,000
Basis of cat farm = FMV of cat farm - Mortgage associated with cat farm = $ 300,000 - $ 40,000 = $ 260,000
So, Shara's recognized gain = $ 260,000 - $ 150,000 = $ 110,000
5) Shara's basis in newly acquired cat farm = Shara's adjusted basis or outside basis = $ 200,000 - $ 50,000 = $ 150,000
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please answer both parts:)
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