Question

Gena exchanges land held as an investment with a $60,000 basis for other land with a $80,000 FMV and a motorcycle with a $10,000 FMV. What is the total fair market value of the exchanged assets?

1) $70,000
2) $80,000
3) $90,000
4) $100,000

Answer 1

The total fair market value of the exchanged assets that Gena received is $90,000, adding up the value of the other land and the motorcycle.

Step-by-step explanation:

The total fair market value of the exchanged assets can be calculated by adding the fair market value of the land received and the fair market value of the motorcycle. In this case, Gena exchanged her land for other land with a fair market value of $80,000 and a motorcycle with a fair market value of $10,000.

The total fair market value is therefore:

$80,000 (FMV of land) + $10,000 (FMV of motorcycle) = $90,000

So, the correct answer is 3) $90,000, which is the total fair market value of the exchanged assets.