Ko Exchanges Computer Equipment (Five-Year Property)with an Adjusted Basis of $9,000

question 56

Multiple Choice

Ko exchanges computer equipment (five-year property) with an adjusted basis of $9,000 for a business auto (five-year property) worth $6,000.Ko also receives cash of $5,000.What are the recognized gain or loss and the basis of the new auto?

• A)$0 and $9,000.
• B)$0 and $6,000.
• C)$2,000 and $11,000.
• D)($3,000)and $12,000.

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Definitions:

Sample Means

The average value of a set of data sampled from a larger population.

Standard Deviation

A measure that quantifies the amount of dispersion or variation of a set of data values.

Sample Mean

The average value of a sample subset of a population, often used as an estimate of the population mean.

Pooled Standard Deviation

A method of estimating the standard deviation across two or more sample sets by pooling their variances under the assumption that the population variances are equal.