Raymond Exchanges a Rental Lake House with an Adjusted Basis

question 22

Multiple Choice

Raymond exchanges a rental lake house with an adjusted basis of $200,000 and fair market value of $320,000 for a rental beach house with a fair market value of $290,000 and $30,000 cash.What are the recognized gain or loss and the basis of the beach house?

• A)$0 gain and $230,000 basis.
• B)$30,000 gain and $200,000 basis.
• C)$30,000 gain and $230,000 basis.
• D)$120,000 gain and $320,000 basis.

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Definitions:

Self-Actualization

The realization of one's potential and the development of self-awareness and personal growth.

Unconditional Positive Regard

An attitude of total acceptance and support towards another person, regardless of what they say or do, often considered important in therapeutic settings.

Empathy

The ability to understand and share the feelings of another person from their point of view.

Pyramid-Shaped Hierarchy

A visual model of an organization where each level represents a rank, with the highest power at the top tapering down to wider levels of lesser power.