Multiple Choice
Mary exchanged an office building used in her business for some land. Mary originally purchased the building for $45,000 and it had an adjusted basis of $20,000 at the time of the exchange. The land had a fair market value of $40,000. Mary also gave $4,000 to the in the transaction. What is Mary's adjusted basis in the land after the exchange?
A) $20,000.
B) $24,000.
C) $36,000.
D) $40,000.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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