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In a qualifying like-kind exchange, Billy exchanges land worth $100,000 with a tax basis of $60,000 and receives a building from Bobby worth $100,000 who

In a qualifying like-kind exchange, Billy exchanges land worth $100,000 with a tax basis of $60,000 and receives a building from Bobby worth $100,000 who has an adjusted tax basis of $40,000. What is Billy’s recognized gain as a result of the exchange?

a. $60,000

b. $0

c. $40,000

d. $100,000

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