In the Current Year, Keyaki Construction Company Exchanged a Building

Multiple Choice

In the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $160,000, for a new building having a fair market value of $650,000. In connection with the exchange, Keyaki paid $280,000 in cash. What is the tax basis of the new building?

A) $370,000
B) $530,000
C) $650,000
D) $690,000
E) None of the above