Question - Joan Reed exchanged commercial real estate that she owned for other commercial real estate plus cash of $50,000. The following additional information pertains to this transaction:
Property given up by Reed:
Fair Market Value $500,000
Adjusted Basis 300,000
Property received by Reed:
Fair Market Value 450,000
What amount of gain should be recognized in Reed's income tax return?
a. $200,000
b. $150,000
c. $50,000
d. $0