Problem:
(A) Corporation exchanges several pieces of office furniture ($2,900 value and basis of $1,250) for 10 filing cabinets from (B) Corporation (filing cabinets value of $2,500 with a basis of $3,000). B Corporation provides A Corporation with season tickets, (B)Corporation paid $400 face value for the tickets
1. What is A Corporation's the and B Corporation's realized and recognized gains?
2. Their deferred gains or losses?
3. Their bases in the acquired properties
4. What alternative transaction to A Corporation would you suggest?