Bobbie Exchanges Business Equipment (Adjusted Basis $160,000)for Other Business Equipment

question 1

Multiple Choice

Bobbie exchanges business equipment (adjusted basis $160,000) for other business equipment that has a FMV of $140,000.Bobbie also receives $30,000 cash.Bobbie's basis in the new equipment is

• A)$130,000.
• B)$140,000.
• C)$160,000.
• D)$170,000.

---

Definitions:

Equilibrium Constants

A dimensionless number representing the ratio of product concentrations to reactant concentrations at equilibrium, with each concentration raised to the power of its coefficient in the balanced equation.

Aldehydes

Organic compounds characterized by the presence of a carbonyl group bonded to at least one hydrogen atom, typically found at the end of a molecule.

Ketones

Organic compounds characterized by a carbonyl group (C=O) bonded to two carbon atoms, prominent in many biological and synthetic contexts.

Cyanohydrins

Organic compounds containing both a hydroxyl and a nitrile group, typically formed from aldehydes or ketones and hydrogen cyanide.