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:

Poverty

A state of having insufficient financial resources or means of support, leading to a lack of basic needs such as food, water, shelter, education, and healthcare.

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The creation or emergence of new living environments for organisms, often due to environmental changes, human activity, or natural processes.

Environment

The sum of all external conditions and influences affecting the life, development, and survival of organisms.

Political Structure

The organization of government and the distribution of power within a society.