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Kole Owns a Warehouse Used in His Business Which Has

Question 53

Multiple Choice

Kole owns a warehouse used in his business which has an adjusted basis of $240,000 and is subject to a mortgage with an $80,000 principal balance.Kole exchanges the warehouse for land worth $320,000.In addition,he receives cash of $40,000.What is Kole's realized gain?


A) $120,000
B) $80,000
C) $200,000
D) $190,000

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