Johnson Inc

question 53

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 C&K's gain recognized on the exchange and its tax basis in the property received from Johnson.

• A)$200,000 gain recognized; $662,000 basis in Johnson property.
• B)No gain recognized; $462,000 basis in Johnson property.
• C)No gain recognized; $487,000 basis in Johnson property.
• D)None of the choices are correct.

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Definitions:

Sustainability

The practice of conducting activities in a way that ensures long-term preservation of natural and societal resources, often emphasizing environmental protection, social equity, and economic viability.

Green Business Practices

Sustainable and environmentally friendly methods employed by companies to minimize their ecological footprint.

Energy Use

The amount of energy consumed in a process or by an organization, household, or device, often with a focus on reducing negative environmental impact.

Capacity

The maximum amount that something can contain or produce.