Problemdean exchanges business equipment with 120000, Ask an Expert

Accounting

Problem:

Dean exchanges business equipment with 120,000 adjusted basis for 40000 cash and business equipment with a 140000 FMV.

Required:

Question: What is the amount of gain which dean recognizes on the exchange?

a. 40000

b. 20000

c. 60000

d. 0

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164381

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