Pam Exchanges a Rental Building, Which Has an Adjusted Basis

question 179

Multiple Choice

Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land?

• A) $0 and $420,000.
• B) $100,000 and $420,000.
• C) $100,000 and $520,000.
• D) $280,000 and $700,000.
• E) None of the above.

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Definitions:

Organization Development (OD)

An area of study and application aimed at improving the ability and knowledge of individuals to facilitate better change and outcomes within organizations.

Planned Change Programs

Organized efforts and strategies implemented within an organization to improve processes, systems, or behaviors in pursuit of enhanced performance and efficiency.

Tempered Radical

An individual within an organization who seeks to initiate change by promoting ideas or actions that significantly differ from the norm, without alienating themselves from the organization.

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Specific, actionable advice or instructions designed to achieve effective results in practical situations.