Johnson Inc

question 69

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 above

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Definitions:

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The cellular process of building proteins from amino acids based on genetic instructions encoded in mRNA; involves transcription and translation stages.

Nerve Impulses

The electrical signals that travel along the nerve fibers, facilitating communication within the nervous system.

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The process by which muscle fibers shorten and generate force, enabling movement of the body and function of internal organs.

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Organic compounds which greatly accelerate the speed of almost every chemical reaction occurring inside cells.