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:

LED Display

An electronic display technology that uses light-emitting diodes to visually convey information, such as numeric readouts or alphanumeric text.

Rung(s)

Logical levels in a ladder diagram, representing a series of connected electrical elements in control programming, like those in a PLC (Programmable Logic Controller).