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:

Gas Exchange

The biological process through which organisms, such as plants and animals, exchange gases with their environment, involving oxygen and carbon dioxide.

Book Lungs

Respiration organs found in arachnids, such as spiders and scorpions, consisting of stacked plates resembling the pages of a book.

Parabronchi

Tubular structures in the lungs of birds that permit air to pass through the lungs in one direction, facilitating efficient gas exchange.

Desiccation

The process of drying out or dehydrating, often leading to extreme dryness.