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Question - Ms. M exchanged real property used in her business that had an adjusted basis to her of $12,000, with an outstanding liability of $2,000, for new real property to be used in her business, with a fair market value of $11,000 and $1,000 in cash. Ms. M's liability was assumed by the other party. What is Ms. M's basis in the new real property?
A. $9,000
B. $10,000
C. $11,000
D. $12,000
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