Cal Exchanges an Apartment Building (Including Land) with an Adjusted

question 36

Multiple Choice

Cal exchanges an apartment building (including land) with an adjusted basis of $55,000 (and fair market value of $90,000) for a piece of undeveloped land valued at $80,000 and $10,000 cash. As a result of the exchange, Carl paid $14,000 of fees. What is Carl's recognized gain on the exchange?

• A) 0
• B) $10,000
• C) $35,000
• D) $21,000

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Definitions:

NASA

The National Aeronautics and Space Administration, a United States government agency responsible for the nation's civilian space program and for aeronautics and aerospace research.

Holocaust

a genocide during World War II in which Nazi Germany, aided by its collaborators, systematically murdered approximately six million Jews, alongside millions of others including Romani people, Soviet civilians, Polish and Soviet prisoners of war, and people with disabilities.

Stanley Milgram

An American social psychologist known for his research on obedience, demonstrating the power of authority in compelling people to go against their personal ethics.

Phillip Zimbardo

An American psychologist known for his research on social psychology, notably the Stanford prison experiment which illustrated how social situations can influence human behavior.