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Dean exchanges a warehouse with a $120,000 adjusted basis for $40,000 cash and a warehouse with a $140,000 FMV. What is the amount of gain

Dean exchanges a warehouse with a $120,000 adjusted basis for $40,000 cash and a warehouse with a $140,000 FMV. What is the amount of gain which Dean recognizes on the exchange?

Group of answer choices

a. $40,000

b. $60,000

c. $0

d. $20,000

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