Matthew Exchanges an Investment Apartment Building for a Parcel of Land.The

question 108

Multiple Choice

Matthew exchanges an investment apartment building for a parcel of land.The apartment building has a fair market value of $80,000 and an adjusted basis of $95,000.The land's value is $60,000.Matthew receives $20,000 cash in the exchange.What is Matthew's recognized gain or (loss) on the exchange and his basis in the land?
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Gain (Loss) Recognized Basis

• A)$ - 0 - $75,000
• B)$(15,000) $65,000
• C)$(35,000) $85,000
• D)$20,000 $30,000
• E)$15,000 $35,000

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FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, a U.S. payroll tax to fund Social Security.

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