Bud Exchanges a Business Use Machine with an Adjusted Basis

question 108

Multiple Choice

Bud exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2,000 cash. What is Bud's recognized gain or loss?

• A)$0
• B)$2,000
• C)$6,000
• D)$8,000
• E)None of the above

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Definitions:

Need For Affiliation

A psychological drive that reflects a person's desire to build and maintain interpersonal relationships, feel a part of groups, and be liked by others.

Managerial Roles

The specific functions or responsibilities assigned to managers in an organization, which often include planning, organizing, leading, and controlling.

Effective Performance

The degree to which objectives are achieved and the extent to which targeted problems are solved in a timely and efficient manner.

Emotional Stability

refers to a person's ability to remain calm and composed, effectively managing their emotions in face of stress, pressure, or adversity.