1.

Szymon exchanges land held as an investment with a $75,000 basis for other land with a $80,000 FMV and a speed boat with a $20,000 FMV. The acquired land is to be held for investment and the speed boat is for personal use. What is the amount of recognized gain?

A) $0

B) $10,000

C) $20,000

D) $30,000

2.

. Pamela owns land for investment purposes. The land is worth $450,000 (basis of $400,000 to Pamela). Pamela exchanges the land, plus $50,000 cash, for a warehouse to be used in her business. The FMV of the warehouse is $575,000, but the warehouse is subject to a mortgage of $75,000, which is assumed by Pamela. Pamela must recognize a gain of

A) $0.

B) $50,000.

C) $125,000.

D) $150,000.

3.

Fernando, a single taxpayer, has the following tax information for the current year.

Charitable contribution of real property with a FMV of $30,000 (adjusted basis $20,000) for which a $30,000 deduction was taken for regular tax.

Research and experimental expenses of $50,000 deducted in full for regular tax.

Fernandos total tax preferences and adjustments equals

A) $5,000.

B) $36,000.

C) $41,000.

D) $45,000.