Latisha owns a warehouse with an adjusted basis of $112,000. She exchanges it for a...
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Accounting
Latisha owns a warehouse with an adjusted basis of $112,000. She exchanges it for a strip mall building worth $150,000. Which of the following statements is correct?
A. If the warehouse was used in Latishas business to store inventory and the strip mall building is to be used as a retail outlet for her business, her recognized gain is 0 and her basis for the strip mall building is 112000
B. If the warehouse was used in Latishas business to store inventory and the strip mall building is to be rented to tenants, her recognized gain is 0 and her basis for the strip mall building is 150000
C. If the warehouse is used by Latisha to store personal use items such as excess furnitire and the strip mall building is to be rented to tenants, her recognized gain is 38000 and her basis for the mall building is 150000
D. None of the above
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