Question: Sienna exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition,

Sienna exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Sienna receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land?
a. $100,000 and $520,000
b. $0 and $420,000
c. $100,000 and $420,000
d. $280,000 and $700,000
e. None of these choices are correct.

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