Bob Owns a Warehouse That Is Used in Business While

question 53

Multiple Choice

Bob owns a warehouse that is used in business while Rebecca owns land.Bob exchanges the warehouse for the land,which will be held for investment.The FMV of the warehouse is $440,000 (basis $240,000) ,but the warehouse is subject to a mortgage of $80,000,which is assumed by Rebecca.Bob receives $40,000 cash and the land,which has a FMV of $320,000.Bob realizes a gain (loss) on the exchange of

• A)$80,000.
• B)$120,000.
• C)$190,000.
• D)$200,000.

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Definitions:

Rooting Behavior

An instinctual reflex in infants that leads them to turn their head toward anything that strokes their cheek or mouth, aiding in breastfeeding.

Drug Addiction

A chronic disease characterized by compulsive or uncontrollable drug seeking and use despite harmful consequences.

Illegal Acts

Actions that are forbidden by law and subject to official punishment.

Physiological Need

A basic bodily requirement.