Richard Exchanges a Building with a Basis of $35,000,and Subject

question 108

Multiple Choice

Richard exchanges a building with a basis of $35,000,and subject to a liability of $25,000,for land with a FMV of $50,000 owned by Bill.Bill takes the building subject to the liability.What is the amount of Richard's realized gain?

• A)$0
• B)$15,000
• C)$25,000
• D)$40,000

---

Definitions:

Work Unit Performance

The effectiveness and efficiency of a group or team in achieving its assigned tasks and goals within an organization.

Functional Managers

Responsible for one area of activity, such as finance, marketing, production, human resources, accounting or sales.

Organisational Goals

The stated aims or objectives that a company or an institution seeks to achieve, guiding its operations and strategic planning.

Affirmative Action Program

Policies designed to increase opportunities for historically underrepresented groups by considering those group memberships in decisions like hiring and admissions.