11. Bud exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2.000 cash. What is Bud's recognized gain or loss? a. $0 b.$2,000 c. $6,000 d. $8,000 e. None of the above 12. Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental house at the mountains with a fair market value of $1 80,000 and cash of $20,000. What is the recognized gain or loss? a. $O b. $20,000 c. ($20,000) d. ($25,000) e. None of the above 13. Moss exchanges a warchouse for a building he will use as an office building. The adjusted basis of the warchouse 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? 50 and $350.000. b. $0 and $450,000. c. (S150,000) and $300,000. d. (5200.000) and $330.000. e. None of the above. 14. An office building with an adjusted basis of $320,000 was destroyed by fire on December 30, 2017.On January 11, 2018, the insurance company paid the owner $450,000. The fair market value of the building was $500,000, but under the co-insurance clause, the insurance company is responsible for only 90 percent of the loss reinvested $410,000 in a new office building on February 12, 2018, that was smaller than the original office building. What is the recognized gain and the basis of the new building if $ 1033 (nonrecognition of gain from an involuntary conversion) is elected? a. $0 and $320,000. b. $0 and $410,000. c. $40,000 and $320,000. d. $130,000 and 410,000. e. None of the above. 15. Sam's office building w ith an adjusted basis of $750,00 ad a fair market value f0,000s condmned on November 30, 2017. Sam is a calendar year taxpayer. He receives a condemnation award of $875,000 on March 1. 2018. He builds a new office building at a cost of $845,000 which is completed and paid for on December 31 2020. What is Sam's recognized gain on receipt of the condemnation award and basis for the new office building assuming his objective is to minimize gain recognition? a. $0: $720,000 b.$30,000, $750,000. c. $30,000; $845,000 d. $150,000: $750,000. e. None of the above