Karen exchanged a rental building, whuch has an adjusted basis if $520,000, for investment land which has a fair market value of $500,000. In addition, Pam received $100,000 in cash. What is the recognized gain or loss and the badis of the investment land?

a. $0 and $420,000

b. $80,000 and $500,000

c. $100,000 and $520,000

d. $280,000 and $700,000

e. none of the above

QUESTIONS Kurm exchanges a rental building, which has an adjusted basis of $520,000, for investment and which has a fule market value of $900,000. In addition, Vam receives $100,000 in cash. What is the recognized pain or loss and the basis of the investment land? as and 5420,000 Oh. $80,000 and $500,000 $100,000 and $520,000 O d. $280,000 and $700,000 e. None of the above