Molly Exchanges Land (Adjusted Basis of $85,000; Fair Market Value

question 18

Multiple Choice

Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange.What is Molly's recognized gain or loss?

• A)$0
• B)$5,000
• C)($2,000)
• D)($7,000)

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Definitions:

Reflexes

Automatic, involuntary responses to specific stimuli that do not require conscious thought.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and transmits neural signals between the brain and the body.

Glial Cells

Non-neuronal cells in the central and peripheral nervous systems that support and protect neurons.

Chemical Signals

Chemical substances released by organisms that influence the behavior or physiology of others.