Determine the amount realized in each of the following property dispositions:

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Determine the amount realized in each of the following property dispositions:

 

  1. Herbert sells some land he owns to Elroy in exchange for $23,000 in cash and 2 breeding hogs worth $1,500 each (adjusted basis of $500 each). In closing the sale, Herbert incurs legal fees of $600, title search costs of $250, and document filing fees of $50.
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The amount is realized is $25,100:

 

Cash received                                    $ 23,000

Value of hogs (2  x  $1,500)                    3,000

Gross sales price                     $ 26,000

Less:  Legal fees            $600

Title search                    250

Filing fees                        50                  (900)

Amount realized                                $ 25,100

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