Question: Dean LTD . , exchanges a business storage facility with a $ 1 2 0 , 0 0 0 adjusted basis for $ 4 0

Dean LTD., exchanges a business storage facility with a $120,000 adjusted basis for $40,000 cash and a parking lot with a $140,000 FMV. What is the amount of gain which Dean LTD. recognizes on the exchange?
A.$0
B.$20,000
C.$40,000
D.$60,000

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