Lonnie Vonn purchased farmland in Raleigh, NC for $150,000 as an investment approximately 10 years ago. Lonnie is approached by a real estate agent representing a client who would like to exchange a parcel of beach property in South Carolina for Lonnie's NC property to grow apples. Lonnie agrees to the exchangehe plans to open a large beach resort on the South Carolina property. Both properties are appraised at $675,000. Lonnie's basis in the new property will be:

Question 32 options:

$675,000

$150,000

$525,000

$0