Cal Exchanges Office Furniture (Fair Market Value = $100,000;adjusted Basis

Multiple Choice

Cal exchanges office furniture (fair market value = $100,000;adjusted basis = $90,000) and a business auto (fair market value = $10,000;adjusted basis = $6,000) for fire retardant filing cabinets (fair market value = $110,000;adjusted basis = $80,000) .How much gain or loss does Cal recognize on the exchange?

A) 0
B) $4,000 gain on auto
C) $10,000 gain on furniture
D) $14,000 total gain
E) None of the above