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Lisa exchanges machinery (adjusted basis $44,000) for an office building with a FMV of $98,000. The office building is subject to a $45,000 mortgage which

Lisa exchanges machinery (adjusted basis $44,000) for an office building with a FMV of $98,000. The office building is subject to a $45,000 mortgage which Lisa assumes. Lisa must recognize a gain of

A. 0

B. $1,000

C. $9,000

D. $54,000

E. None of the above

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