What is Sarajane’s basis in the land received in the exchange described in Question 19, assuming her basis in the land given up was $12,000?

Question 19

Fred and Sarajane exchanged land in a qualifying like-kind exchange. Fred gives up land with an adjusted basis of $11,000 (fair market value of $16,000) in exchange for Sarajane’s land with a fair market value of $12,000 plus $4,000 cash. How much gain should Fred recognize on the exchange?

a. $0
b. $12,000
c. $14,000
d. $16,000
e. None of the above