Pam Exchanges a Rental Building, Which Has an Adjusted Basis

question 20

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.

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Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by excessive, uncontrollable worry about everyday things, significantly impacting daily functioning.

Major Depressive Disorder

A psychological state involving ongoing depressive conditions or an indifference to pursuits, resulting in a severe impact on day-to-day life.

Depression

A common mental health disorder characterized by persistent sadness, lack of interest in activities, and can include various emotional and physical problems.

Suicide

The purposeful act of committing suicide.