Multiple Choice
Eduardo owns land held for investment purposes that has a basis of $250,000.He exchanges the land,plus $40,000 of cash,for a warehouse he will hold as rental property.The warehouse is worth $410,000,but is subject to a mortgage of $70,000 which Eduardo will assume.The gain realized by Eduardo is
A) $50,000.
B) $40,000.
C) $0.
D) $160,000.
Correct Answer:
Verified
Correct Answer:
Verified
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