Brock exchanges property with an adjusted basis of $40,000 subject to a mortgage of $20,000 for other property owned by Reese with a fair market value of $80,000. Reese assumes the mortgage. No cash or other assets were part of the trade. Brock's amount realized is
A)$40,000
B)$50,000
C)$80,000
D)$90,000
E)$100,000

Question

Quizplus · Accepted Answer

The Answer of Brock exchanges property with an adjusted basis of $40,000 subject to a mortgage of $20,000 for other property owned by Reese with a fair market value of $80,000. Reese assumes the mortgage. No cash or other assets were part of the trade. Brock's amount realized is
A)$40,000
B)$50,000
C)$80,000
D)$90,000
E)$100,000

Brock Exchanges Property with an Adjusted Basis of $40,000 Subject