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:

Fiduciary Duty

An obligation to act in the best interest of another party, such as the duty of a trustee towards their beneficiaries.

Breach Of Confidence

An unlawful disclosure of confidential information without the permission of the party that owns the information.

Anton Piller Order

A court order that permits the plaintiff to search premises and seize evidence without prior warning, to prevent the destruction of pertinent documents or materials.

Copyright Law

Legislation that grants creators exclusive rights to their original works, including the right to copy, distribute, and adapt their creations.