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Julia Exchanges a Machine Used in Her Business with Elvira

question 44

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Julia exchanges a machine used in her business with Elvira for another machine.The basis of Julia's old machine is $100,000,FMV is $132,000,and she gives Elvira cash of $28,000.Elvira's basis in her machine is $140,000 and the FMV is $160,000.What,if any,gain is recognized on the transaction and what is the adjusted basis of the property received by Julia and by Elvira?


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