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

question 102

Short Answer

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?
$\begin{array}{lr}\text { Gain (Loss) Recognized } & \text { Basis } \\a.\$-0- & \$ 75,000 \\b.\$(15,000) & \$ 65,000 \\c.\$(35,000) & \$ 85,000 \\d.\$ 20,000 & \$ 30,000 \\e.\$ 15,000 & \$ 35,000\end{array}$

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Definitions:

Ilioinguinal

Relating to the ilium, the largest bone in the pelvis, and the inguinal region, often referring to a specific nerve that carries sensation from the groin to the abdominal muscles.

Pudendal

Pertaining to the pudendum, the external genitalia, or the pudendal nerve that supplies the area.

Brachial Plexus

A network of nerve fibers that run from the spine, through the neck, to the arm, and to the hand, controlling muscle movements and sensation.

Axillary

Pertaining to the armpit area, including structures located within or related to the armpit, such as the axillary artery, vein, and lymph nodes.