Koch Traded Machine 1 for Machine 2

question 100

Multiple Choice

Koch traded machine 1 for machine 2. Koch originally purchased machine 1 for $75,000 and machine 1's adjusted basis was $40,000 at the time of the exchange. Machine 2's seller purchased it for $65,000 and machine 2's adjusted basis was $55,000 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

• A) $40,000.
• B) $50,000.
• C) $55,000.
• D) $75,000.
• E) None of these.

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Definitions:

Communicate Well

The ability to convey information, ideas, or feelings clearly and effectively through various forms of communication.

Listening Habits

Practices or behaviors people adopt when receiving auditory information, influencing how well they understand and respond to that information.

Poor Listening

The inability to effectively understand or interpret the message being communicated by others.

Filtering

A method listeners use to hear only what they want to hear, which may result in failing to receive messages correctly.