Bianca and dion exchange real estate in a like-kind


Question - Bianca and Dion exchange real estate in a like-kind exchange. Bianca's basis in the real estate, subject to a $100,000 mortgage, is $250,000 and the fair market value is $300,000. She receives real estate with a fair market value of $200,000 and Dion assumes the mortgage. What is Bianca's recognized gain and adjusted basis for the real estate received?

a. $0, $150,000.

b. $50,000, $200,000.

c. $50,000, $300,000.

d. $100,000, $300,000.

e. None of the above.

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Accounting Basics: Bianca and dion exchange real estate in a like-kind
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