Ko Exchanges Computer Equipment Five-Year Property)with an Adjusted Basis of $9,000

question 47

Multiple Choice

Ko exchanges computer equipment five-year property) with an adjusted basis of $9,000 for a business auto five-year property) worth $6,000.Ko also receives cash of $5,000.What are the recognized gain or loss and the basis of the new auto?

• A)$3,000)and $12,000.
• B)$2,000 and $11,000.
• C)$0 and $6,000.
• D)$0 and $9,000.

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