Kole owns a warehouse used in his business which has an adjusted basis of $240,000 and is subject to a mortgage with an $80,000 principal balance.Kole exchanges the warehouse for land worth $320,000.In addition,he receives cash of $40,000,and the other party will assume the mortgage.What is Kole's realized gain?
A)$120,000
B)$80,000
C)$200,000
D)$190,000

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The Answer of Kole owns a warehouse used in his business which has an adjusted basis of $240,000 and is subject to a mortgage with an $80,000 principal balance.Kole exchanges the warehouse for land worth $320,000.In addition,he receives cash of $40,000,and the other party will assume the mortgage.What is Kole's realized gain?
A)$120,000
B)$80,000
C)$200,000
D)$190,000

Kole Owns a Warehouse Used in His Business Which Has