Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. How much, if any, was Bob’s recognized gain or loss with respect to these transactions determined taking all of these facts into consideration? Select one of the following answers: a. No gain or loss is recognized. b. $11,000 gain is recognized. c. $214,000 gain is recognized. d. The transfer by Bob to Carl is a gift. e. $21,000
Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. How much, if any, was Bob’s recognized gain or loss with respect to these transactions determined taking all of these facts into consideration?
Select one of the following answers:
a. No gain or loss is recognized.
b. $11,000 gain is recognized.
c. $214,000 gain is recognized.
d. The transfer by Bob to Carl is a gift.
e. $21,000
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