Bud Exchanges a Business Use Machine with an Adjusted Basis

question 108

Multiple Choice

Bud exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2,000 cash. What is Bud's recognized gain or loss?

• A)$0
• B)$2,000
• C)$6,000
• D)$8,000
• E)None of the above