Firm A exchanged an old asset with a $20,000 tax basis for a new… Firm A exchanged an old asset with a $20,000 tax basis for a new asset with a $32,000 FMV. Apply the generic rules under each of the following assumptions:Required:Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are not qualified property for nontaxable exchange purposes.Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are qualified property for nontaxable exchange purposes.Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm A paid $1,700 cash to the other party.Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm A paid $1,700 cash to the other party.Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm A received $4,500 cash from the other party.Compute A’s realized gain, recognized gain, and tax basis in the new asset assuming old asset and new asset are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm A received $4,500 cash from the other party.LawSocial ScienceTax law ACT 320
