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?

Gain (Loss)Recognized 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

Question

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 $20,000 cash in the exchange.What is Matthew's recognized gain or (loss)on the exchange and his basis in the land?
​
Gain (Loss)Recognized Basis
A)$ - 0 - $75,000
B)$(15,000) $65,000
C)$(35,000) $85,000
D)$20,000 $30,000
E)$15,000 $35,000

Quizplus · Accepted Answer

The Answer of 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 $20,000 cash in the exchange.What is Matthew's recognized gain or (loss)on the exchange and his basis in the land?
​
Gain (Loss)Recognized Basis
A)$ - 0 - $75,000
B)$(15,000) $65,000
C)$(35,000) $85,000
D)$20,000 $30,000
E)$15,000 $35,000

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