On September 20, 2017, Greg entered into an agreement to exchange an eight-unit rental apartment building for a four-unit rental apartment building. The closing took place on October 20, 2017 at which time the transfers were completed. Gregs adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction, and had an adjusted basis to the owner, Tom, of $420,000. What is Gregs basis in the eight-unit building?

$320,000

$360,000

$400,000

$420,000

Gain, in certain cases, may be treated as capital gain in which of the following situations?

a. Upon recognition of a nonbusiness bad debt

b. Upon the sale of inventory

c. On the sale of Section 1231 property

d. In none of the above situations

Which of the following is a capital asset as defined by the Code?

a. Inventory held primarily for resale in the ordinary course of business

b. Supplies used in the ordinary course of business

c. Depreciable property and land used in a trade or business

d. Both a and b

e. None of the above is correct.