Ron Ryder and Joe jetty exchanged like kind business property

QUESTION

Ron Ryder and Joe jetty exchanged like kind business property. Ron had an adjusted basis of 30000 in his property (Fair market value of 33000). Joe’s property had an adjusted basis of 21000 and a fair market value of 23000 and Joe gave Ron 10000 in cash. Determine Ron’s and Joe’s realized gain or loss, recognized gain or loss, and the basis in their new property.

ANSWER

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