Donna exchanged Asset 1(realty) with Colin in return for Asset 2(realty) and $100,000. Asset 1...

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Accounting

Donna exchanged Asset 1(realty) with Colin in return for Asset 2(realty) and $100,000. Asset 1 and 2
are like-kind assets (real estate). Donnas basis in Asset 1 is $80,000. Colins Asset 2 has a FMV of
$300,000 and a basis of $320,000. What is Donnas recognized gain or loss on the exchange?
a. $0.
b. $80,000.
c. $100,000.
d. $320,000

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