swapping land for one to another
here is the scenario:
property fox (owned by kevin, chris and clay)
property davisboro (owned by kevin, chris and clay)
kevin passed away. Kevin is clay's father. Clay wants to buyout chris's (a friend) share in property fox by giving him the share of kevin and clay's in property davisboro.
property fox has 351.99 acres (valued at 1500/acre) = $527985,
so 33.33% is $175,995 (chris's share)
property davisboro has 322.5 acres (valued at 1000/acre) = $322,500
so 33.33% is $107,500. So kevin and clay's share would have been $215,000
so, to buy out chris, $215,000 minus $175,995 = $39,005 (amount chris needs to pay)
but Chris paid only $23000 claiming that the property davisboro has some swamp land. So $39,005 minus $23,000 = $16,005
value at date of death for
property fox $114250 (kevin's 33.33%)
property davisboro $88750 (kevin's 33.33%)
Questions:
how do you record the transactions?
how do you record the $16005?
I really appreciate if anyone can help me.
