Business, 13.12.2019 07:31 itzdulceee
Luke sold a building and the land on which the building sits to his brother at fair market value. the fair market value of the building was determined to be $325,000; luke built the building several years ago at a cost of $200,000. luke had claimed $ 45,000 of depreciation expense on the building . the fair market value of the land was determined to be $210,000 at the time of sale; luke purchased the land many years ago for $130,000. luke's brother will use the building in his business.
a. what is the amount and character of luke's recognized gain or loss on the building?
b. what is the amount and character of luke's recognized gain or loss on the land?
Answers: 2
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Luke sold a building and the land on which the building sits to his brother at fair market value. th...
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