Matthew exchanges an investment apartment building for a parcel of land. The apartment building has a fair market value of $80,000 and an adjusted basis of $95,000. The land's value is $60,000. Matthew receives $20,000 cash in the exchange. What is Matthew's recognized gain (loss) on the exchange and his basis in the land?
?
Gain (Loss) Recognized Basis
A. $-0- $75,000
B. $(15,000) $65,000
C. $(35,000) $85,000
D. $20,000 $30,000
E. $15,000 $35,000
Answer: A
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