Examlex

Solved

Kai Owns an Apartment Building Held for Investment Purposes

question 48

Multiple Choice

Kai owns an apartment building held for investment purposes.The apartment building is worth $500,000,although it is subject to a mortgage of $100,000.Kai's basis in the apartment building is $380,000.Kai exchanges the apartment building for an office building.The office building has an FMV of $350,000.Kai receives $50,000 cash in addition to receiving the office building,and the other party assumes the apartment building mortgage.What is Kai's recognized gain on this exchange?


Definitions:

Restating

The act of expressing the same idea or concept in different words, often to provide clarity or emphasis.

Original Passage

A specific section of text or spoken words that has not been modified or simplified from its initial form.

Own Words

The unique manner in which someone expresses ideas or information, distinct from direct quotes or paraphrasing.

Documentation Format

The prescribed structure and layout for official documents or records, adhering to specific standards or guidelines.

Related Questions