Johnson Inc

question 95

Multiple Choice

Johnson Inc.and C&K Company entered into an exchange of real property.Here is the information for the properties to be exchanged. Pursuant to the exchange,C&K paid $25,000 cash to Johnson and assumed the mortgage on the Johnson property.Compute Johnson's gain recognized on the exchange and its tax basis in the property received from C&K.

• A)$25,000 gain recognized; $593,000 basis in C&K property.
• B)$25,000 gain recognized; $793,000 basis in C&K property.
• C)$225,000 gain recognized; $593,000 basis in C&K property.
• D)None of the choices are correct.

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Definitions:

Hypothalamus

A region of the brain responsible for hormone production and regulation of vital bodily functions, including temperature, hunger, and thirst.

Oxytocin

A hormone released by the pituitary gland that causes increased contraction of the uterus during labor and stimulates the ejection of milk into the ducts of the breasts.

Calcitonin

A hormone produced by the thyroid gland that helps regulate blood calcium levels by lowering them when they are high.

Calcium Ion Concentration

The level of calcium ions (Ca2+) in a particular system, important for various cellular processes including signal transduction and muscle contraction.