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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Definitions:

Information and Material Resources

Assets in the form of data, information systems, and physical materials that are crucial for organizational operations.

Social Loafing

The tendency for individuals to expend less effort when working collectively than when working individually.

Team Diversity

The inclusion of individuals with a variety of backgrounds, skills, perspectives, and experiences in a team, which can enhance creativity and problem-solving capabilities.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.