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

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Definitions:

Recombinant Battery

A gel cell battery.

Gelled Electrolyte

A type of battery electrolyte that has a gel-like consistency, often used in lead-acid batteries, providing advantages such as reduced leakage and maintenance.

Specific Gravity Reading

A measurement that indicates the density of a liquid compared to the density of water.

Completely Dead

A term often used to describe a totally unresponsive or non-functional electronic device or system.