Molly Exchanges a Small Machine (Adjusted Basis of $85,000; Fair

question 14

Multiple Choice

Molly exchanges a small machine (adjusted basis of $85,000; fair market value of $78,000) used in her business and investment land (adjusted basis of $10,000; fair market value of $15,000) for a large machine (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's recognized gain or loss?

• A)$0
• B)$5,000
• C)($2,000)
• D)($7,000)
• E)None of the above

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Definitions:

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The moral guidelines and principles that govern the actions and decisions of individuals working in law enforcement agencies.

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Activities or tasks performed in a professional context, often related to one's career or occupation.

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The branch of philosophy that deals with questions about morality, including the nature of good and evil, right and wrong.