Babex IncAnd OMG Company Entered into an Exchange of Real Property

question 41

Multiple Choice

Babex Inc.and OMG Company entered into an exchange of real property.Here is the information for the properties to be exchanged. Pursuant to the exchange,OMG assumed the mortgage on the Babex property.Compute OMG's gain recognized on the exchange and its tax basis in the property received from Babex.

• A)$175,000 gain recognized; $514,500 basis in Babex property.
• B)No gain recognized; $689,500 basis in Babex property.
• C)No gain recognized; $514,500 basis in Babex property.
• D)None of the choices are correct.

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Definitions:

Psychological Response

An individual's emotional and mental reaction to a particular stimulus or situation, which can influence behavior and decision-making.

Time Management Matrix

A tool used to categorize tasks based on their urgency and importance, helping individuals prioritize their time effectively.

Quadrants

A four-part division, often used in graphs, charts, or matrices to organize information or data into distinct sections for analysis or decision-making.

Interruptions

Breaks or disturbances that halt or disrupt a conversation, activity, or process.