Koch Traded Machine 1 for Machine 2 When the Fair

question 92

Multiple Choice

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,150. Koch originally purchased Machine 1 for $76,700, and Machine 1's adjusted basis was $40,850 at the time of the exchange. Machine 2's seller purchased it for $64,150 and Machine 2's adjusted basis was $55,850 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

• A) $40,850.
• B) $49,150.
• C) $55,850.
• D) $76,700.
• E) None of the choices are correct.

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Definitions:

Venography

An imaging procedure that involves injecting a contrast dye to visualize veins, used to detect clots or blockages.

Contrast Medium

A substance used in medical imaging to improve the contrast of structures or fluids within the body, making them more visible on scans.

Ionization

The process by which an atom or molecule acquires a negative or positive charge by gaining or losing electrons.

Wavelengths

The distance between corresponding points of two consecutive waves, often used in the contexts of light, sound, and other waves.