Five years ago, JBH, Inc. transferred land with a $345,000 book and tax basis for a different parcel of land worth $472,000. JBH included its $127,000 realized gain in book income; the exchange was nontaxable pursuant to Code Section 1031. This year, JBH sold the parcel of land received in the exchange for $533,000 cash. Compute JBH's book and tax gain on this current sale; (interesting #'s). 

A. $188,000 book and tax gain. 

B. $188,000 book gain and $61,000 tax gain.

 C. $61,000 book gain and $188,000 tax gain. 

D. $61,000 book and tax gain. 

E. None of these _________________. 

Answer rating: 100% (QA)

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