Elizabeth Exchanges Her Retail Storage Assets for Retail Displays

question 19

Multiple Choice

Elizabeth exchanges her retail storage assets for retail displays.In this like-kind exchange,Elizabeth receives $2,000 in cash.The storage assets have a fair market value of $12,000 and Elizabeth's basis in the assets is $3,000.The displays have a fair market value of $10,000 and a basis of $8,000.What is Elizabeth's realized gain on the exchange?

• A)zero
• B)$3,000
• C)$6,000
• D)$9,000

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