QUESTION 56

1. Adam has a Boot Factory with a Fair Market Value (FMV) of 500.000 which is subject to a mortgage of 70,000 and has an Adjusted Basis in his hands of 300,000. He exchanges it for Bobs Boot Factory worth 700,000 which is subject to a mortgage of 300,000 and has an adjusted basis in Bobs hands of 650,000. Bob also pays Adam 30,000 cash and each takes the others Boot Factory subject to its mortgage. In this transaction Adams Gain Recognized is:

   		$800,000
   		$200,000
   		$30,000
   		$20,000
   		None of the Above