Bob Owns a Warehouse That Is Used in Business While

question 53

Multiple Choice

Bob owns a warehouse that is used in business while Rebecca owns land.Bob exchanges the warehouse for the land,which will be held for investment.The FMV of the warehouse is $440,000 (basis $240,000) ,but the warehouse is subject to a mortgage of $80,000,which is assumed by Rebecca.Bob receives $40,000 cash and the land,which has a FMV of $320,000.Bob realizes a gain (loss) on the exchange of

• A)$80,000.
• B)$120,000.
• C)$190,000.
• D)$200,000.

---

Definitions:

Water Shortages

A situation where the available water within a region is less than the region's demand.

Solar Energy

Renewable energy obtained from the sun's radiation, utilized through technologies like solar panels.

Earth's Capacity

The maximum population size or level of activity that the Earth can sustain without the environment becoming degraded.

Affluent Consumers

denotes individuals or groups with significant disposable income, capable of purchasing goods and services beyond their basic needs.