Anderson Company Exchanged Land Used in Its Business for Another

Multiple Choice

Anderson Company exchanged land used in its business for another parcel of land with a fair market value of $160,000. In addition, Anderson received $40,000 in cash. Anderson will use the new parcel of land in its business. fte land that Anderson gave in exchange had an adjusted basis of $230,000 at the time of the exchange. What is Anderson's adjusted basis in the new land it received in the exchange?

A) $160,000.
B) $190,000.
C) $230,000.
D) $260,000.