Koch Traded Machine 1 for Machine 2when the Fair Market

question 9

Multiple Choice

Koch traded Machine 1 for Machine 2when the fair market value of both machines was $50,000. Koch originally purchased Machine 1 for $75,000, and Machine 1's adjusted basis was $40,000 at the time of the exchange. Machine 2's seller purchased it for $65,000 and Machine 2's adjusted basis was $55,000 at the time of the exchange. What is Koch's adjusted basis in Machine 2 after the exchange?

• A)$40,000.
• B)$50,000.
• C)$55,000.
• D)$75,000.
• E)None of the choices are correct.

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Definitions:

Liver

A vital organ in vertebrates responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion, among other functions.

Seven

A number; not a biological science key-term.

Organs

Structures consisting of different tissues that perform specific functions within an organism.

Anus

Outlet of the digestive tube.