Lindsey Exchanges Investment Real Estate Parcels with Donna

question 10

Multiple Choice

Lindsey exchanges investment real estate parcels with Donna. Her adjusted basis in the property is $400,000, and it is encumbered by a mortgage liability of $200,000. Donna assumes the mortgage. Donna's property is appraised at $1,000,000 and is subject to a $100,000 liability. Lindsey assumes the liability. If no cash is exchanged, what is the amount of gain recognized by Lindsey?

• A)$- 0 -
• B)$100,000
• C)$200,000
• D)$500,000
• E)$900,000

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Definitions:

Polygynous

A mating system in which a male has more than one female partner at the same time.

Multiple Mates

A reproductive strategy where an individual has sexual relationships with more than one partner over a period of time.

Males Only

This term refers to a characteristic, condition, or situation applicable exclusively to male individuals or organisms.

Social Learning

The process of learning behaviors through the observation of others, which can involve direct instruction, modeling, and imitation.