Roy Exchanges a Productive Use Machine (Adjusted Basis of $9,000)for

Multiple Choice

Roy exchanges a productive use machine (adjusted basis of $9,000) for a new machine worth $6,000.In addition,he receives cash of $5,000.What is the recognized gain or loss and the basis of the new machine?

A) $0 and $9,000.
B) $0 and $4,000.
C) $2,000 and $6,000.
D) $2,000 and $9,000.
E) None of the above.