1. Dena owns 500 acres of farm land in southeastern Maryland. Her adjusted basis for the land is $480,000 and there is a $400,000 mortgage on the land. She exchanges the land for an office building owned by Chris in Newark, New Jersey. The office building received has a fair market value of $900,000. Chris also assumes Dena's mortgage on the land. What is the amount of Dena's recognized gain or loss on the exchange? $0 b. $400,000 $500,000 d. $820,000 None of the above a. c. e. 2. Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000 for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's recognized gain or loss? $0 b. 5,000 c. ($2,000) d. ($7,000) None of the above a. e. a. 3. Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land? $0 and $420,000. b. $100,000 and $420,000. $100,000 and $520,000. d. $280,000 and $700,000. e. None of the above. c. 4. Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $600,000 and the fair market value of the office building is $350,000. In addition, Moss receives cash of $150,000. What is the recognized gain or loss and the basis of the office building? $0 and $350,000. b. $0 and $450,000. ($150,000) and $300,000. d. ($200,000) and $350,000. e. None of the above. a. C. a. 5. Ryan has the following capital gains and losses for 2018: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15%/20% gain. Which of the following is correct: The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain. b. The net capital gain is composed of $5,000 28% gain and $2,000 0%/15%/20% gain. The net capital gain is composed of $3,000 28% gain, $2,000 25% gain, and $2,000 0%/15%/20% gain. d. The net capital gain is composed of $1,000 28% gain and $6,000 0%/15%/20% gain. None of the above. c. e