Perry Inc. and Dally Company entered into an exchange of real property. Here is the information for the properties to be exchanged. PerryDallyFMV$500,000 $530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Perry assumed the mortgage on the Dally property, and Dally assumed the mortgage on the Perry property. Compute Perry's gain recognized on the exchange and its tax basis in the property received from Dally.
A. $100,000 gain recognized; $410,000 basis in the Dally property.
B. No gain recognized; $410,000 basis in the Dally property.
C. No gain recognized; $440,000 basis in the Dally property.
D. None of the choices are correct.
Answer: C
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