Glen Owns a Building That Is Used in Business

question 51

Multiple Choice

Glen owns a building that is used in business.The building is worth $200,000,but is subject to a mortgage of $40,000.Glen's basis in the building is $120,000.Glen exchanges the building for investment land worth $150,000 plus $10,000 cash.In addition,the other party assumes the mortgage which will be held for investment.Glen must recognize a gain of

• A)$0.
• B)$10,000.
• C)$50,000.
• D)$80,000.

---

Definitions:

Evolutionary Psychologists

Researchers who study how evolutionary principles such as natural selection have shaped human psychology and behavior over time.

Negative Stereotypes

Generalized beliefs about a specific group of people that cast them in a negative light, often leading to prejudice and discrimination.

Outgroups

Groups to which an individual does not belong and towards which they may feel antipathy or competition.

Illusory Correlation

The perception of a relationship between two variables when none exists.