Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 34

Jason exchanged office furniture (seven-year life) for other furniture (seven-year life). The old furniture had an adjusted basis of $14,000, and the new furniture had a FMV of $22,000. Jason also paid $5,000 cash in the exchange. What are the recognized gain or loss and the basis of the furniture? a. $0 and $14,000
B) $0 and $19,000
C) $ 6,000 and $14,000
D) ($8,000) and $9,000