Question: What problem may exist in determining the amount realized for an investor who exchanges common stock of a publicly traded corporation for a used building?

What problem may exist in determining the amount realized for an investor who exchanges common stock of a publicly traded corporation for a used building? How is the problem likely to be resolved? A. It may be difficult to determine the fair market value (FMV) of the used building received by the investor. The problem is likely to be resolved by using the FMV of the property given (the publiclytraded stock) to measure the amount realized. B. It may be difficult to determine the fair market value (FMV) of the property given (the publiclytraded stock). The problem is likely to be resolved by using the FMV of the used building received by the investor to measure the amount realized. C. An investor cannot exchange property to purchase common stock of a publicly-traded corporation. The only way to resolve this is for the building to be sold in a separate transaction and then the proceeds used to purchase the publicly-traded stock. D. This exchange does not generate a realized gain or loss for the building until the publicly-traded stock is sold. The basis of the building is transferred to the publicly-traded stock then the taxpayer must realize the gain or loss once the publicly-traded stock is sold.

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