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During 2013,Ethel Exchanges a Machine for Another Machine in a Like-Kind

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Essay

During 2013,Ethel exchanges a machine for another machine in a like-kind exchange.Ethel's adjusted basis in the machine given up is $8,000,and she receives a machine worth $12,000 plus $2,000 cash.
a.Calculate the amount of gain realized by Ethel on the exchange.
b.Calculate the amount of the gain that must be recognized by Ethel on the transaction.
c.Calculate Ethel's basis in the new machine.


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