Acme inc. and beamer company exchanged like-kind production assets. acme’s asset had a $240,000 fmv and $117,300 adjusted tax basis, andbeamer’s asset had a $225,000 fmv and a $168,200 adjusted tax basis. beamer paid $15,000 cash to acme as part of the exchange. which of the following statements is true? a. acme’s realized gain is $122,700 and recognized gain is -0-.b. beamer’s realized gain is $56,800 and recognized gain is $15,000.c. acme’s basis in its newly acquired asset is $117,300.d. beamer’s basis in its newly acquired asset is $168,200

The answer is; C. Acme's basis in it's newly acquired asset is $117,300

Explanation:

Step 1: Determine Acme's Cost basis, realized gain and recognized gain

Acme's cost basis=$117,300

realized gain=Fair market value+cash received-cost basis

where;

Fair market value=$240,000

cash received=$15,000

cost basis=$117,300

replacing;

realized gain=240,000+15,000-117,300=137,700

Acme had a recognized gain of $137,700

Recognized gain=$15,000 in cash

Step 2: Determine Beamer's Cost basis, realized gain and recognized gain

Beamer's cost basis=$168,200+15,000=$183,200

realized gain=Fair market value-cost basis

where;

Fair market value=$225,000

cost basis=$183,200

replacing;

realized gain=225,000+183,200=$41,800

Acme had a recognized gain of $0

Recognized gain=$0

The answer is; Acme's basis in it's newly acquired asset is $117,300