Multiple Choice
Tom ftompson traded in a station wagon (used in his business) which had an adjusted basis of $7,700 for a new one costing $26,900. fte auto dealer allowed a trade-in allowance of $8,000 on the old station wagon and Tom paid $18,900 in cash. What is Tom's basis in the new station wagon?
A) $18,900
B) $15,700
C) $26,600
D) $26,900
Correct Answer:
Verified
Correct Answer:
Verified
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