Zandu Corporation Exchanged a Building (Fair Market Value = $1,000,000

question 54

Multiple Choice

Zandu Corporation exchanged a building (fair market value = $1,000,000, adjusted basis = $700,000) and two semi-tractor-trailers (fair market value = $300,000; adjusted basis = $225,000) , all five years old, for land to build a new facility valued at $1,300,000.What is Zandu's realized and recognized gain and its basis in the land? Realized gain Recognized gain Basis of land

• A)0 0 $ 925,000
• B)$75,000 $75,000 $1,000,000
• C)$300,000 $300,000 $1,300,000
• D)$375,000 $75,000 $1,000,000

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Definitions:

Acute Dystonic Reaction

A sudden, involuntary muscle contraction, often a side effect of certain medications, leading to abnormal postures or movements.

Haloperidol

An antipsychotic medication used to treat schizophrenia, acute psychosis, and to control tics and vocal utterances of Tourette's syndrome.

Tardive Dyskinesia

A neurological disorder resulting in involuntary, repetitive body movements due to long-term antipsychotic medication use.

Idea of Reference

The false belief that casual incidents and external events have a particular and significant personal meaning, often seen in psychotic disorders.