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What tax amount will the taxpayer realize as exchange

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Reference no: EM132995762

Question - A taxpayer owns a commercial building with a fair market value of $500,000, and adjusted basis of $350,000, and a mortgage of $300,000. The taxpayer exchanges the commercial building and $80,000 cash for a different commercial building that has a fair market value of $440,000. The taxpayer assumes the $80,000 mortgage on the building his is obtaining in the trade. What tax amount will the taxpayer REALIZE as a result of the exchange?

A. $360,000

B. $130,000

C. $310,000

D. $230,000

Reference no: EM132995762

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