B Exchanges Investment Land with an Adjusted Basis of $40,000

question 43

Multiple Choice

B exchanges investment land with an adjusted basis of $40,000 for another parcel of investment land with a fair market value of $50,000 plus $12,000 in cash.What is B's recognized gain on this exchange?

• A)$12,000
• B)$20,000
• C)$22,000
• D)No gain is recognized.

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Definitions:

Gigabytes

A unit of digital information storage equal to 1,024 megabytes, often used to measure the capacity of memory or storage devices.

Cache Memory Levels

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Proximity

The state or condition of being close or near; in technology, it often relates to the detection of and response to nearby objects or signals.

Machine Cycle

The series of steps a central processing unit goes through when it performs a program instruction.