In a transaction that qualified as a like-kind exchange, John transferred unimproved land that he had held for investment. John’s adjusted basis in the land he
gave up was $200,000, and the land was worth $450,000. In exchange, John received a building that he will use as a warehouse in his business plus $150,000 cash
(additional consideration). What basis will John assign to the land he received in this exchange? 2.Davis Furs purchased a warehouse building on September 25,
2001, for $1,400,000. If $300,000 is allocated to the land and the building was sold in October of 2012, determine the maximum cost recovery allowance on the
building for 2012. Answer A. $ 40,000 B. None of the other answers is correct. See my Supporting Documents submission for my answer and explanation. C. $ 28,204 D.
$ 22,328 E. $ 31,672 F. $ 34,921 3. T purchased new 5-year property costing $650,000. No other equipment was purchased, and this equipment was purchased in May of
the year. Assuming T wishes to take the maximum cost recovery deduction he is allowed, his deduction (MACRS & A?ยง179 deduction & AFYD, if applicable) will
be” Answer A. $650,000 B. None of the other answers is correct. See my Supporting Documents submission for my answer and explanation. C. $409,600 D. $445,600 E.
$390,000