Karla Owns 200 Acres of Farm Land Is Southeastern Virginia

question 97

Multiple Choice

Karla owns 200 acres of farm land is southeastern Virginia.Her adjusted basis for the land is $240,000 and there is a $200,000 mortgage on the land.She exchanges the land for an office building owned by Chris in Newark, New Jersey.The building has a fair market value of $450,000.Chris assumes Karla's mortgage on the land.What is the amount of Karla's recognized gain or loss on the exchange?

• A)$0.
• B)$200,000.
• C)$250,000.
• D)$410,000.
• E)None of the above.

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Definitions:

Personal Computers

Stand-alone computers designed for individual use, capable of running general-purpose applications and accessing the internet.

Retailer

An entity that buys goods in large quantities from manufacturers or distributors and sells them to consumers in smaller quantities.

Convenience Stores

Retail outlets that provide a range of everyday items such as snacks, beverages, tobacco products, and household essentials, often operating for extended hours.

Butter

A dairy product made from churning milk or cream, used as a spread or in cooking.