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Daniella Exchanges Business Equipment with a $100,000 Adjusted Basis for $10,000

Question 41

Multiple Choice

Daniella exchanges business equipment with a $100,000 adjusted basis for $10,000 cash and business equipment with a $96,000 FMV.What is the amount of gain recognized on the exchange?


A) $0
B) $4,000
C) $6,000
D) $10,000

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