QUESTION 7 Aaron exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $300,000 for a renital house at the mountains with a fair market value of $280,000 and cash of $20,000. What is the recognized gain or loss? a. SO b. $20,000 c. ($20,000) d. ($25,000) e. None of the above QUESTION 7 Aaron exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $300,000 for a renital house at the mountains with a fair market value of $280,000 and cash of $20,000. What is the recognized gain or loss? a. SO b. $20,000 c. ($20,000) d. ($25,000) e. None of the above