Molly exchanges a small machine (adjusted basis of $85,000;fair market value of $78,000)used in her business and investment land (adjusted basis of $10,000;fair market value of $15,000)for a large machine (fair market value of $93,000)to be used in her business in a likekind exchange.What is Molly's recognized gain or loss?
A)$0
B)$5,000
C)($2,000)
D)($7,000)
E)None of these

Question

Molly exchanges a small machine (adjusted basis of $85,000;fair market value of $78,000)used in her business and investment land (adjusted basis of $10,000;fair market value of $15,000)for a large machine (fair market value of $93,000)to be used in her business in a like­kind exchange.What is Molly's recognized gain or loss?
A)$0
B)$5,000
C)($2,000)
D)($7,000)
E)None of these

Quizplus · Accepted Answer

The Answer of Molly exchanges a small machine (adjusted basis of $85,000;fair market value of $78,000)used in her business and investment land (adjusted basis of $10,000;fair market value of $15,000)for a large machine (fair market value of $93,000)to be used in her business in a like­kind exchange.What is Molly's recognized gain or loss?
A)$0
B)$5,000
C)($2,000)
D)($7,000)
E)None of these

Molly Exchanges a Small Machine (Adjusted Basis of $85,000;fair Market