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Problem 1: Tom Tanner traded in a business building with an adjusted basis of $200,000 for a smaller building valued at $120,000. In addition to the smaller building, Tom received $30,000 in cash and was relieved of the existing liability on the old building of $50,000. What is Tom's recognized gain?
Option 1: $48,000Option 2: $80,000Option 3: $30,000Option 4: $50,000Option 5: $0
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