Finish the sentence by choosing form the 4 possibilities and explain your answer: 1) The deferral of taxation on unrecognized gains from a nontaxable property transaction .......... a. is generally accomplished by adjustments to the basis of the new or acquired property. b. becomes a permanent tax savings if the property is held for the statutory period following the transaction. c. generally has no effect on the basis of the property. d, results in a reduction of the basis of the acquired property by the amount of tax paid in a subsequent transfer of the property. 2. A gain is recognized in a nontaxable exchange to the extent that you receive property or cash. True or False and why? 3. Mr. Monty owned an office building that he had purchased at a cost of $600,000 and that now had an adjusted basis of $400,000. In the current year, he traded it to a person who was not related to him for an apartment house having a fair market value of $500,000. The apartment house has 50 units and rents to individuals. The office building has 25 units and rents to Montys businesses. What is Mr. Montys recognized gain or loss on this exchange? And why - explain your