Jason sold land with a basis of $35,000 in a tax- deferred
transaction in the current year and realized a gain of $50,000. The
land received had a fair market value of $65,000 and a basis of
$40,000. The gain deferred was $10,000. What is Jason’s basis in
the land received?
a. $35,000
b. $40,000
c. $50,000
d. $55,000
