Karen Owns a Commercial Office Building with a Fair Market

question 67

Multiple Choice

Karen owns a commercial office building with a fair market value of $140,000. She purchased the building as an investment for $102,000 in 2003. She has claimed $18,000 in depreciation deductions. Karen trades the building for an apartment complex. The apartment complex has a value of $140,000, and the exchange qualifies for like-kind deferral treatment. What is Karen's basis in the apartment complex?

• A)$- 0 -
• B)$ 58,000
• C)$ 84,000
• D)$140,000
• E)$198,000