Willie Owns 115 Acres of Land with a Fair Market

question 75

Multiple Choice

Willie owns 115 acres of land with a fair market value of $57,000. He purchased the land as an investment for $35,000 in 1993. Willie trades the land for a 122-acre parcel adjacent to other property he owns. The 122 acres has a value of $57,000, and the exchange qualifies for like-kind deferral treatment. What is Willie's basis in the new parcel of land?

• A)$- 0 -
• B)$17,000
• C)$35,000
• D)$57,000
• E)$74,000

---

Definitions:

Rivalries

Competitive or antagonistic interactions or relationships between individuals, groups, or entities.

Oligarchy

A form of government where power effectively rests with a small number of people, often distinguished by royalty, wealth, family ties, or military control.

Concentrated Power

A situation where a significant amount of authority or power is held by a small number of individuals or organizations.

Bureaucracies

Formal organizations characterized by a hierarchical structure, a clear division of labor, set rules and regulations, and impersonal relationships, aimed at achieving maximum efficiency.