Trent,who Is in the Business of Racing Horses,exchanges a Racehorse

question 21

Essay

Trent,who is in the business of racing horses,exchanges a racehorse with a basis of $80,000 for $40,000 cash and a trotter (another racehorse)with a $150,000 fair market value.
a.What is the amount of gain realized by Trent?
b.What is the amount of gain recognized by Trent?
c.What is the adjusted basis of the trotter?

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