Nancy and Tonya Exchanged Assets

question 145

Multiple Choice

Nancy and Tonya exchanged assets.Nancy gave Tonya her personal residence with an adjusted basis of $280,000 and a fair market value of $560,000.The house has a mortgage of $200,000 which is assumed by Tonya.Tonya gave Nancy a yacht used in her business with an adjusted basis of $250,000 and a fair market value of $360,000.What is Tonya's realized and recognized gain?

• A)$310,000 realized and $310,000 recognized gain.
• B)$310,00 realized and $0 recognized gain.
• C)$110,000 realized and $110,000 recognized gain.
• D)$110,000 realized and $0 recognized gain.
• E)None of the above.

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Definitions:

Operating Experience

Accumulated knowledge and skills from directly managing or running business operations.

Intellectual Honesty

Commitment to truth and objectivity in one’s reasoning and arguments, avoiding bias or misrepresentation of facts.

Owning Resources

Refers to having legal possession or control over resources such as property, intellectual property, or financial assets.

Professional Experience

The accumulation of knowledge, skills, and expertise that individuals gain through performing tasks in their respective fields or careers.