Hank Exchanged an Old Asset with a $12,000 Adjusted Basis

question 100

Multiple Choice

Hank exchanged an old asset with a $12,000 adjusted basis for a new asset with a $32,000 FMV plus $2,000 cash. Compute Hank's realized and recognized gain if the new and old assets are like-kind properties.

• A) $20,000 realized gain; $0 recognized gain
• B) $22,000 realized gain; $0 recognized gain
• C) $22,000 realized gain; $2,000 recognized gain
• D) $2,000 realized gain; $2,000 recognized gain

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Definitions:

Repatriations

The process of returning a person or a group of people to their home country or place of origin, often used in the context of returning cultural artifacts or compensating exploited individuals or communities.

1930s America

A period in United States history marked by the Great Depression, significant economic hardship, and major changes in society and politics.

Reproductive Units

Entities capable of producing offspring, playing a fundamental role in the continuation of species and the diversity of life forms.

Forced Sterilizations

Involuntary medical procedures performed without the full consent of the individual, historically used as a means of population control and eugenics, particularly targeting marginalized groups.