Richard Exchanges a Building with a Basis of $35,000,and Subject

question 108

Multiple Choice

Richard exchanges a building with a basis of $35,000,and subject to a liability of $25,000,for land with a FMV of $50,000 owned by Bill.Bill takes the building subject to the liability.What is the amount of Richard's realized gain?

• A)$0
• B)$15,000
• C)$25,000
• D)$40,000

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Definitions:

Bone Conduction

The process by which sound waves pass through the bones of the skull directly to the inner ear, bypassing the outer and middle ears.

Lens Shape

The geometric form of a lens, affecting its focusing properties and the quality of the image it produces.

Medial Aspect

Refers to the part of a body or structure that is nearer to the midline of the body or to a median plane.

Eyeball

The spherical part of the eye that contains the iris, pupil, and retina, and is responsible for vision.