Multiple Choice
Emily owns land for investment purposes that has a FMV of $300,000 (basis of $260,000) .She exchanges the land,plus $40,000 cash,for a warehouse to be used in her business.The warehouse is worth $420,000,but is subject to a mortgage of $80,000 which Emily will assume.The gain realized by Emily on the exchange is
A) $40,000.
B) $80,000.
C) $120,000.
D) $160,000.
Correct Answer:
Verified
Correct Answer:
Verified
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