Risa Exchanges an Office Building with a $600,000 Adjusted Basis

question 248

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) $175,000
• B) $200,000
• C) $0
• D) none of the above.

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Definitions:

Antisocial Tendencies

Patterns of behavior that show a lack of consideration for others and can include hostility towards societal norms and laws.

Personality Test

A psychological assessment tool designed to reveal aspects of an individual's character or psychological makeup.

Individualistic Culture

A culture that values personal independence and self-expression, often prioritizing individual goals and achievements over collective ones.

Collectivist Culture

A culture that places a high value on community, cooperation, and group interests over individual interests.