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Dean Exchanges Business Equipment with a $120,000 Adjusted Basis for $40,000

Question 49

Multiple Choice

Dean exchanges business equipment with a $120,000 adjusted basis for $40,000 cash and business equipment with a $140,000 FMV.What is the amount of gain which Dean recognizes on the exchange?


A) $0
B) $20,000
C) $40,000
D) $60,000

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