Dean Exchanges Business Equipment with a $120,000 Adjusted Basis for $40,000

question 49

Multiple Choice

Dean exchanges business equipment with a $120,000 adjusted basis for $40,000 cash and business equipment with a $140,000 FMV.What is the amount of gain which Dean recognizes on the exchange?

• A)$0
• B)$20,000
• C)$40,000
• D)$60,000

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Definitions:

Controlled

A state or condition where something is regulated or directed, often to maintain a desired level of quality, efficiency, or outcome.

Biological Approach

The biological approach in psychology focuses on understanding human behavior and mental processes through the biological basis of individuals, such as genetics, brain structures, and neurotransmitter activity.

Endocrine System

A collection of glands that produce hormones to regulate metabolism, growth and development, tissue function, and mood among other things.

Neurotransmitters

Chemical messengers in the brain that transmit signals across synapses from one neuron to another, influencing various functions including mood and behavior.