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Sheena Maskell Sheena Maskell
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7 years ago
David owns a warehouse that is used in business while Emily owns land. David exchanges the warehouse for the land, which will be held for investment. The FMV of the warehouse is $420,000 (basis $240,000) and the warehouse is subject to a mortgage of $80,000, which is assumed by Emily. David receives $40,000 cash and the land that has a FMV of $300,000 (basis of $260,000 to Emily). Emily will use the warehouse in a trade or business. The gain realized by Emily on the exchange is
A) $40,000.
B) $ 80,000.
C) $ 120,000.
D) $ 160,000.
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
Authors:
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Yoko900Yoko900
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Sheena M. Author
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#2
7 years ago
I took a chance with your answer

It was right
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