Koch Traded Machine 1 for Machine 2 When the Fair

question 113

Multiple Choice

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,550. Koch originally purchased Machine 1 for $75,900, and Machine 1's adjusted basis was $40,450 at the time of the exchange. Machine 2's seller purchased it for $64,550 and Machine 2's adjusted basis was $55,450 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

• A)$40,450.
• B)$49,550.
• C)$55,450.
• D)$75,900.
• E)None of the choices are correct.

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Definitions:

Conscious Experience

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Wilhelm Wundt

Known as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Edward Titchener

A psychologist known for founding structuralism and his method of introspection to identify the basic elements of consciousness.

Stream of Consciousness

A narrative mode or method that attempts to capture the flow of thoughts and feelings running through the mind.