Mary Exchanged an Office Building Used in Her Business for Some

question 56

Multiple Choice

Mary exchanged an office building used in her business for some land. Mary originally purchased the building for $45,000 and it had an adjusted basis of $20,000 at the time of the exchange. The land had a fair market value of $40,000. Mary also gave $4,000 to the  in the transaction. What is Mary's adjusted basis in the land after the exchange?

• A) $20,000.
• B) $24,000.
• C) $36,000.
• D) $40,000.
• E) None of the choices are correct.

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Definitions:

Great Suffering

A state of intense pain, distress, or hardship, which can be physical, emotional, or psychological in nature.

Many of People

Refers broadly to a large number of individuals in a group or population.

Immanuel Kant

A German philosopher in the 18th century, known for his works in epistemology, ethics, and aesthetics, particularly the philosophy of transcendental idealism.