Emily Owns Land for Investment Purposes That Has a FMV

question 7

Multiple Choice

Emily owns land for investment purposes that has a FMV of $300,000 (basis of $260,000) .She exchanges the land,plus $40,000 cash,for a warehouse to be used in her business.The warehouse is worth $420,000,but is subject to a mortgage of $80,000 which Emily will assume.The gain realized by Emily on the exchange is

• A)$40,000.
• B)$80,000.
• C)$120,000.
• D)$160,000.

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Definitions:

Socio-emotional

Pertaining to the interplay between social interactions and emotional responses.

Physical

Relating to the body as opposed to the mind or emotions.

Teratogens

Agents or factors that can cause malformation or defects in an embryo or fetus during pregnancy.

Prenatal Development

The process of growth and development within the womb from conception to birth, involving critical stages for physical and neurological formation.