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.

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Definitions:

Pet Grooming Salon

A business establishment that offers services such as bathing, hair cutting, and styling for pets, primarily dogs and cats.

Groomer

A person who cleans, brushes, and sometimes trims the hair or fur of animals, particularly pets.

Grooming Fee

A charge for services related to the cleaning and maintenance of appearance, often associated with pets or personal care.

Maximizing Profits

The process or strategy employed by businesses to achieve the highest possible profit margins by optimizing production, sales, and pricing.