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

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Definitions:

Glaciers

Large, moving masses of ice that form by the accumulation and compaction of snow, known for shaping landscapes through processes like erosion and deposition.

Seasonal Effects

Variations or changes in biological, environmental, or social systems that are due to seasonal variations in the Earth's position relative to the sun.

Tilt

The inclination of an object, layer, or surface, often measured in degrees from the horizontal plane.

Glaciers

Large masses of ice that form on land from the accumulation and compaction of snow, moving slowly over time.