Pam Exchanges a Rental Building, Which Has an Adjusted Basis

question 179

Multiple Choice

Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land?

• A) $0 and $420,000.
• B) $100,000 and $420,000.
• C) $100,000 and $520,000.
• D) $280,000 and $700,000.
• E) None of the above.

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Definitions:

Reverse Transcriptase

An enzyme used by retroviruses to transcribe their RNA into DNA, allowing the viral DNA to be integrated into the host's genome, crucial in the replication of retroviruses including HIV.

RNA Template

A strand of RNA that serves as a guide for the synthesis of a complementary RNA or DNA molecule during transcription or replication.

Ribosome

Complex molecular machines in cells that synthesize proteins by translating messenger RNA into amino acid sequences.

Binding Sites

Specific regions on molecules (e.g., enzymes, receptors) where other molecules (e.g., substrates, ligands) can attach or bind.