Yael Exchanges an Office Building Worth $150,000 for Investment Land

question 58

Multiple Choice

Yael exchanges an office building worth $150,000 for investment land worth $175,000.Yael also transferred stock worth $25,000 to the other party.Yael's adjusted basis in the building and stock is $180,000 and $11,000,respectively.How much gain or loss will Yael recognize on the exchange?

• A)$0
• B)($30,000)
• C)($16,000)
• D)$14,000

---

Definitions:

Price

The amount of money required to purchase a good, service, or asset, determined by supply and demand dynamics.

Natural Monopoly

A market condition where a single firm can provide goods or services to an entire market at a lower cost than if there were multiple firms in the industry.

Antitrust Suits

Legal cases intended to prevent or penalize monopolies and ensure competition in the marketplace.

Average Cost

The total cost of production divided by the number of units produced.