Brock Exchanges Property with an Adjusted Basis of $40,000 Subject

question 70

Multiple Choice

Brock exchanges property with an adjusted basis of $40,000 subject to a mortgage of $20,000 for other property owned by Reese with a fair market value of $80,000. Reese assumes the mortgage. No cash or other assets were part of the trade. Brock's amount realized is

• A)$40,000
• B)$50,000
• C)$80,000
• D)$90,000
• E)$100,000

---

Definitions:

1945-1954

This period marks the aftermath of World War II and the onset of the Cold War, witnessing significant political, social, and economic changes globally.

Economic Boom

A period of significant economic growth and prosperity within a country or region, characterized by increases in employment, production, and consumer spending.

Second World War

A global conflict from 1939 to 1945, involving most of the world's nations, characterized by significant battles, genocide, and the ultimate use of nuclear weapons.

Anticommunist Hysteria

describes the fear and suspicion of communism that spread in the United States, especially during the Cold War, leading to widespread accusations and investigations of un-American activities.