Arlington LLC Exchanged Land Used in Its Business for Some

question 101

Multiple Choice

Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land it exchanged for $28,500. The new land had a fair market value of $35,250. Arlington also received $2,500 of office equipment in the transaction. What is Arlington'srecognized gain or loss on the exchange?

• A) $0.
• B) $2,500.
• C) $6,750.
• D) $9,250.
• E) None of the choices are correct.

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Definitions:

Franz Mesmer

An 18th-century physician best known for developing what he called "animal magnetism" and what later became known as mesmerism, a precursor to hypnotism.

Theodore Sarbin

An American psychologist and professor known for his work in the development of narrative psychology.

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.

Fantasy

An imaginative or fanciful thought, not grounded in reality, often serving as a mental escape from mundane or stressful scenarios.