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:

Panic Disorder

A type of anxiety disorder characterized by sudden and repeated attacks of intense fear and discomfort.

Compulsion

A repetitive and rigid behavior or mental act that persons feel driven to perform in order to prevent or reduce anxiety.

Repetitive Behavior

Actions repeated over and over again, which can be a symptom of several disorders, including OCD and autism spectrum disorders.

Mental Act

A process or activity carried out by the mind, such as thinking, reasoning, or remembering.