Ed Edmonds Exchanged a Business Truck with an Adjusted Basis

question 4

Multiple Choice

Ed Edmonds exchanged a business truck with an adjusted basis of $320,000 for another business truck with a fair market value of $20,000, a boat with a fair market value of $6,000, and $2,000 cash. What is the basis of the new truck?

• A) $18,000
• B) $20,000
• C) $24,000
• D) $30,000
• E) $32,000