Brock Exchanges Property with an Adjusted Basis of $40,000 Subject

question 70

Multiple Choice

Brock exchanges property with an adjusted basis of $40,000 subject to a mortgage of $20,000 for other property owned by Reese with a fair market value of $80,000. Reese assumes the mortgage. No cash or other assets were part of the trade. Brock's amount realized is

• A)$40,000
• B)$50,000
• C)$80,000
• D)$90,000
• E)$100,000