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:

Mexican Nationals

Citizens of Mexico, a country in southern North America, with a rich cultural heritage and diverse landscapes.

Race-specific Policies

Strategies and laws designed to address issues uniquely affecting individuals of certain racial groups.

Affirmative Action

Policies or measures aimed at increasing the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded.

William Julius Wilson

An influential American sociologist known for his research and theories on race, class, and inequality in the United States.