Repbulic LLC exchanged land used in its business for some new land to be used in the business. Republic LLC originally purchased the land it exchanged for $37,500. The new land had a fair market value of $39,750. Arlington also received $11,500 of cash in the transaction. What is Republic LLC's recognized gain or loss on the exchange

Republic LLC's recognized gain on the exchange is $11,500

Explanation:

In order to calculate Republic LLC's recognized gain or loss on the exchange we would have to calculate first the Realized gain and then compare it with the amount received by cash and value with less amount would be the recognized gain or loss on the exchange.

Therefore, Realized gain=Fair Market value of property received + Cash received - Adjusted basis of the property transferred

Realized gain=$39,750+$11,500-$37,500

Realized gain=$13,759

The cash in the transaction was $11,500.

Therefore, Republic LLC's recognized gain on the exchange is $11,500

answer: 2 weeks hbu

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.