This is a federal income tax question. I dont understand why her recognized gain is 0 for choice b but her recognized gain is 25000 for choice c. The answer is given. Am i missing a tax rule that i should know? Can someone explain?

Which of the folan adjusted basis of s200,000. She exchanges it for a strip mall building worth tenants, her recognized gain is $25,000 and her basis for the stri retail outlet for her business, her recognized gain is $0 and her b building is to be re 204. $225,000. Which of the following statements is correct? Latisha owns a ware house with an a in Latisha's business to store inventory and the strip mall building is to be rented to is to be used as a a. If the warehouse was used in Latisha's business to store inventory b. If the warehouse was used in Latisha's business to store inventory c. If the wareh p mall building is $225,000. in Latisha's business to store inventory and the strip mall building is to be used asa asis for the strip mall building is $200,000. s furniture a bunlding is to be rented to tenants, her recognized gain is $25,000 and her basis for the strip mall building is $225,000. d. Only b. and c. are correct. e. a., b., and c. are correct. ANSWER RATIONALE Both b. and c. describe like-kind exchanges