Lily Exchanges a Building She Uses in Her Rental Business

question 54

Multiple Choice

Lily exchanges a building she uses in her rental business for a building owned by Kendall,which she will use in her rental business.The adjusted basis of Lily's building is $120,000 and the fair market value is $170,000.Which of the following statements is correct?

• A)Lily's recognized gain is $50,000 and her basis for the building received is $120,000.
• B)Lily's recognized gain is $50,000 and her basis for the building received is $170,000.
• C)Lily's recognized gain is $0 and her basis for the building received is $120,000.
• D)Lily's recognized gain is $0 and her basis for the building received is $170,000.
• E)None of these is correct.

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Definitions:

Conditioned Relief

A learned response where an organism anticipates the removal of an aversive stimulus, thus reducing stress or discomfort.

Effective Punishment

A method of decreasing undesired behavior by applying an adverse stimulus following the behavior, aiming to reduce or eliminate that behavior.

Unwanted Motivation

Motivation that is unintended or undesirable, often leading to behaviors that are not aligned with an individual's long-term goals or values.

Unwanted Response

A behavior or reaction that is not desired or intended in a particular context or situation.