Grant Exchanges an Old Pizza Oven from His Business for a New

question 31

Multiple Choice

Grant exchanges an old pizza oven from his business for a new oven.In addition to the old oven,which has a basis of $10,000,Grant pays $4,000 cash and takes out a loan on the new oven for $6,000.The new oven is valued at $22,000.What is Grant's recognized gain or loss due on this transaction?

• A)$- 0 -
• B)$2,000
• C)$12,000
• D)$16,000
• E)$22,000

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