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explain pls!
5. Jenny owns an office building in Boston with an adjusted basis of $100,000 and a fair market value of $500,000. It is encu
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Answer #1

Jenny's office building:-

Fair market value 500000   

(-) debt. (80000 × 5)     400000

Overall 100000.

The correct option is b. $80000 ; $100000

Since by exchanging the property Jenny need not pay the dept and her basis in the apartment building is $100000.

b. $80000; $100000

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