Andrew and Sandra agree to exchange land that each owns. Andrew’s land is worth $46,000, and Sandra’s land is worth $51,000. Therefore, in the exchange of the land, Andrew has to pay Sandra $5,000.
Andrew and Sandra agree to exchange land that each owns. Andrew’s land is worth $46,000, and Sandra’s land is worth $51,000. Therefore, in the exchange of the land, Andrew has to pay Sandra $5,000.
Andrew’s amount realized is $46,000 ($51,000 value of land received less $5,000 of cash paid). Sandra’s amount realized is $51,000 ($46,000 value of land received plus $5,000 of cash received).
