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:

Thrill and Adventure Seeking

This refers to the desire or tendency of individuals to engage in activities that are exciting, risky, or adventurous, often for the sensation or experience it provides.

Behavioral Change

A modification in an individual's actions or reactions as a result of experiences, learning, or external influences.

Elation

A state of elevated happiness, joy, or euphoria, often characterized by high energy and enthusiasm.

Detachment

The emotional state in which an individual maintains a boundary from a specific situation or emotional involvement.