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

question 56

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

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Definitions:

Forecasting Overhead

The process of estimating future overhead costs of a business, which are not directly tied to a specific business activity but are necessary for the business to operate.

Staffing Requirements

The specific needs a company has for hiring employees, including the number and type of workers needed to fulfill business objectives.

Service Delivery Model

A framework that defines the way services are delivered to clients or customers, including the processes, roles, and technologies involved.

Training Specialists

Professionals who design, conduct, and evaluate programs that enhance the skills and knowledge of an organization's employees.