Question: please help In 20X6, Hat Corporation exchanged an apartment complex in Dallas (purchased in 20X2; cost $540,000 adjusted basis $350,000) for an apartment complex in

please help In 20X6, Hat Corporation exchanged an apartment complex in Dallas please help

In 20X6, Hat Corporation exchanged an apartment complex in Dallas (purchased in 20X2; cost $540,000 adjusted basis $350,000) for an apartment complex in Houston (FMV $710,000). In 20x9, after deducting $90,000 of depreciation, Hat sells the Houston apartment complex for $780,000. Which of the following statements is true regarding these transactions? a. Hat's 25% gain is $280,000. b. Hat has ordinary income of $56,000 on the sale. c. Hat's 25% gain is $90,000. d. Hat has ordinary income of $18,000 on the sale. e. None of the answers provided is correct

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