Richard Exchanges a Building with a Basis of $35,000, and Subject

question 1038

Multiple Choice

Richard exchanges a building with a basis of $35,000, and subject to a liability of $25,000, for land with a FMV of $50,000 owned by Bill. Bill takes the building subject to the liability. What is the amount of Richard's realized gain?

• A) $40,000
• B) $25,000
• C) $0
• D) $15,000

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The act of consuming food substances for nutritional support of the body.