Question Content Area

Josef exchanged land (tax basis of $34,000), that he had held for 4 years as an investment, for similar land valued at $42,000 which was owned by Adrian. In connection with this transaction, Adrian assumed Josefs $11,000 mortgage. As a result of this transaction, Josef should report a long-term capital gain of how much?

a. $11,000

b. $19,000

c. $0

d. $8,000