Pam Exchanges a Rental Building, Which Has an Adjusted Basis

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.