I'm running through the recently released AICPA question and I am just not understanding why the answer is 15K answer D.
A taxpayer owned a rental home with an $85,000 fair
market value, a $70,000 adjusted basis, and a $60,000
mortgage. The taxpayer exchanged the home for $12,000
in cash plus a rental property with a $65,000 fair market
value and a $52,000 mortgage. What amount of gain, if
any, must be recognized by the taxpayer on the
Netting the two mortgages (60-52) is 8,000 and the cash received is 12K is 20K how do I get to 15K from there thanks