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:

Implementation of Intervention

The process of applying strategies or actions intended to alter or influence a particular outcome or set of conditions.

Social Change

Transformations in societal structures, processes, and patterns of behavior over time, often driven by cultural, economic, or technological shifts.

Action Plan

A detailed proposal for doing or achieving something, often outlining steps, timing, and resources needed to accomplish a specific goal.

Kurt Lewin

A pioneering psychologist known for his field theory in social science, emphasizing the interaction between an individual's internal state and external environment.