(Answered) Question - mary traded furniture used in her business to a

Accounting

Question - Mary traded furniture used in her business to a furniture dealer for some new furniture. Mary originally purchased the furniture for $45,000 and it had an adjusted basis of $20,000 at the time of the exchange. The new furniture had a fair market value of $40,000. Mary also gave $4,000 to the dealer in the transaction. What is Mary's adjusted basis in the new furniture after the exchange?

A. $20,000

B. $24,000

C. $36,000

D. $40,000

E. None of these

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