Matthew Exchanges an Investment Apartment Building for a Parcel of Land.The

Multiple Choice

Matthew exchanges an investment apartment building for a parcel of land.The apartment building has a fair market value of $80,000 and an adjusted basis of $95,000.The land's value is $60,000.Matthew receives $20,000 cash in the exchange.What is Matthew's recognized gain or (loss) on the exchange and his basis in the land?
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Gain (Loss) Recognized Basis

A) $ - 0 - $75,000
B) $(15,000) $65,000
C) $(35,000) $85,000
D) $20,000 $30,000
E) $15,000 $35,000