Karen Owns a Commercial Office Building with a Fair Market

Multiple Choice

Karen owns a commercial office building with a fair market value of $140,000. She purchased the building as an investment for $102,000 in 2003. She has claimed $18,000 in depreciation deductions. Karen trades the building for an apartment complex. The apartment complex has a value of $140,000, and the exchange qualifies for like-kind deferral treatment. What is Karen's basis in the apartment complex?

A) $- 0 -
B) $ 58,000
C) $ 84,000
D) $140,000
E) $198,000