Question

Pam exchanges a rental building, which has an adjusted basis of $36,000 and a tractor whose fmv was 25,000 for investment land which has a fair market value of $55,000. Pam basis in the tractor was 32,000. What is Pam’s basis of the investment land?

Answer 1

Answer:

$36,000

Explanation:

Based on the information given we were told that he exchanges a rental building that has an adjusted basis of the amount of $36,000 which means that Pam’s basis of the investment land will be the Adjusted basis of the amount $36,000.

Therefore Pam’s basis of the investment land will be $36,000