Risa Exchanges an Office Building with a $600,000 Adjusted Basis

question 57

Multiple Choice

Risa exchanges an office building with a $600,000 adjusted basis for an apartment building with a $1,000,000 FMV and $200,000 of marketable securities.The other party indicates he had paid $175,000 for the securities a year earlier.What is Risa's basis for the securities?

• A)$0
• B)$175,000
• C)$200,000
• D)none of the above.

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