Landry Exchanged Land with an Adjusted Basis of $50,000 for Another

question 37

Multiple Choice

Landry exchanged land with an adjusted basis of $50,000 for another parcel of land worth $35,000 plus $10,000 of cash.Landry held the original land for investment purposes and will do the same with the new parcel.Due to the exchange,Landry will recognize

• A)$10,000 gain.
• B)$5,000 gain.
• C)$5,000 loss.
• D)$0.

---

Definitions:

Advantages

Benefits or favorable factors that give an individual, group, or entity a better position or greater likelihood of success.

Disadvantages

The negative, less favorable aspects or conditions of a situation, proposal, or plan.

Stock Options

Financial instruments granting the holder the right to buy or sell shares of a company's stock at a predetermined price within a specified timeframe.

Stock Purchase Plans

Programs offered by companies allowing employees to purchase company stock often at a discount, as part of their benefits package.