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:

Statistical Methodology

The collection of methods and practices used in collecting, analyzing, interpreting, and presenting data in statistical research.

Descriptive Statistics

Statistical methods that summarize and organize the characteristics of a data set, including measures such as mean, median, and standard deviation.

Population

A complete set of elements (people, objects, transactions, etc.) that share at least one common characteristic.

AVERAGE(range)

A function used in spreadsheet software to calculate the arithmetic mean of a range of cells.