Sonny exchanges a productive use machine (adjusted basis of $20,000) for a new machine worth $18,000.In addition, he receives cash of $6,000.What is the recognized gain or loss and the basis of the new machine?
A) $0 and $18,000.
B) $0 and $22,000.
C) $4,000 and $18,000.
D) $4,000 and $24,000.
E) None of the above.
Correct Answer:
Verified
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