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agasfer [191]
2 years ago
7

On October 1, Paula exchanged an apartment building (adjusted basis of $375,000 and subject to a mortgage of $125,000) for anoth

er apartment building owned by Nick (fair market value of $550,000 and subject to a mortgage of $125,000). The property transfers were made subject to the mortgages. What amount of gain should Paula recognize?
Business
1 answer:
Nonamiya [84]2 years ago
8 0

Answer:

The amount of gain Paula should recognize is $0.

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