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Sam has a Boot Factory with an Adjusted Basis in his hands of 250,000. He exchanges it for Bobs Boot Factory worth 500,000, and 50,000

Sam has a Boot Factory with an Adjusted Basis in his hands of 250,000. He exchanges it for Bobs Boot Factory worth 500,000, and 50,000 cash. In this transaction Sam's Gain Recognized is:

$50,000

$300,000

$550,000

zero

None of the Above

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