Dexter Davenport Had an Adjusted Basis of $230,000 in Real

question 77

Multiple Choice

Dexter Davenport had an adjusted basis of $230,000 in real estate which he held for investment. He exchanged it for other real estate to be held for investment with a fair market value of $210,000, a boat with a fair market value of $45,000 and $15,000 cash. What is Dexter's basis in the real estate and the boat received?

• A) Real Estate: $210,000; Boat: $30,000
• B) Real Estate: $210,000; Boat: $45,000
• C) Real Estate: $225,500; Boat: $45,000
• D) Real Estate: $230,000; Boat: $40,000

---

Definitions:

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focused on fair labor conditions.

American Union Against Militarism

An organization founded in the early 20th century aiming to promote peace and resist militaristic policies and practices.

House-Grey Memorandum

Unofficial diplomatic communication in 1916 between the United States and Great Britain outlining a proposal for joint mediation of World War I by the United States, contingent upon support from both the Allies and the Central Powers.