Jason Owns a Warehouse That Is Used in Business

question 28

Multiple Choice

Jason owns a warehouse that is used in business.The FMV of the warehouse is $200,000 (basis $120,000) ,and the warehouse is subject to a mortgage of $40,000.Jason exchanges the warehouse for land valued at $150,000.The other party also pays him $10,000 cash and assumes the mortgage on the warehouse.Jason's basis in the land received will be

• A)$120,000.
• B)$150,000.
• C)$180,000.
• D)$200,000.

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Definitions:

Angle Of Declination

The angle between the geographic true north and the magnetic north at a particular location, relevant in navigation and compass readings.

True North

The direction along the Earth's surface towards the geographic North Pole.

Magnetic North

The direction in which the north end of a compass needle or other freely suspended magnet will point, driven by the Earth's magnetic field.

Saturation

The maximum amount of magnetic flux a material can hold.