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Question - Maud exchanges a rental house at the beach with an adjusted basis of $240,000 and a fair market value of $220,000 for a rental house at the mountains with a fair market value of $190,000 and cash of $30,000. What is the recognized gain or loss?
a. $0.
b. $20,000.
c. $30,000.
d. ($20,000).
e. None of the above.
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