On October 1, Paula Exchanged an Apartment Building (Adjusted Basis

question 30

Multiple Choice

On October 1, Paula exchanged an apartment building (adjusted basis of $375,000 and subject to a mortgage of $125,000) for another apartment building owned by Nick (fair market value of $550,000 and subject to a mortgage of $125,000) . The property transfers were made subject to the mortgages. What amount of gain should Paula recognize?

• A) $0
• B) $25,000
• C) $125,000
• D) $175,000
• E) None of the above

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Definitions:

Electromagnetism

The branch of physics concerned with the interaction of electric currents or fields and magnetic fields.

Fiber Optic Sensor

A sensing device that uses light guided through fibers to detect changes in a parameter, such as temperature or pressure.

Electrical Interference

Disturbances generated by external sources that affect an electrical circuit by electromagnetic induction, electrostatic coupling, or conduction.

Ultrasonic Sensors

Devices that measure the distance to an object through the emission of ultrasonic sound waves and the detection of their reflections, used in various applications like level sensing and obstacle detection.