D Exchanged an Apartment Complex That He Had Owned for Eight

question 22

Multiple Choice

D exchanged an apartment complex that he had owned for eight years for farm land.The apartment complex was worth $1,050,000 and D's basis was $475,000.The transferee assumed a note secured by an interest in the property of $800,000.D received $10,000 cash and assumed liability for loans against the farm land he received in the amount of $700,000.How much is D's gain recognized and his basis in the farm land (fair market value = $940,000) , respectively?

• A)$110,000 and $475,000
• B)$110,000 and $465,000
• C)$0 and $365,000
• D)$10,000 and $375,000