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

question 91

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 like­kind exchange.What is Molly's recognized gain or loss?

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

---

Definitions:

Structural Therapy

A form of family therapy that seeks to identify and rectify patterns of interaction that cause dysfunction within a family.

Psychoanalysis

A therapeutic approach developed by Freud, focusing on uncovering and understanding the unconscious motivations that influence behavior.

Bowenian Family Systems

A form of family therapy that views the family as an emotional unit, focusing on relationships and generational transmission of behaviors.

Symbiotic Relationship

A cooperative, mutually beneficial interaction between two different organisms, usually to the advantage of both.