Question: Alberto exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $300,000 and the fair

Alberto exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $300,000 and the fair market value of the office building is $175,000. In addition, Alberto receives cash of $75,000. What is the recognized gain or loss and the basis of the office building? a. ($75,000) and $150,000 b. $0 and $225,000 c. None of the choices presented are correct. d. $0 and $175,000 e. ($100,000) and $175,000

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