Question

#19) On May 20, 2019, Greg entered into an agreement to exchange an eight-unit rental apartment building for a four-unit rental apartment building. The closing took place on August 20, 2019 at which time the transfers were completed. Greg’s adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. What, if any, is Greg’s taxable gain?

Group of answer choices

a-$120,000

b-$48,000

c-$40,000

d-$0

Please show calculations. Thanks.

Answer 1

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