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I'd like to see how to do the following.

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I'd like to see how to do the following.,1. Ed Edmonds exchanged a business truck with an adjusted basis of $32,000 for another business truck with a fair market value of $20,000, a boat with a fair market value of $6,000, and $2,000 cash. What is the basis of the new truck? a. $18,000 b. $20,000 c. $24,000 d. $30,000 e. $32,000,2. A fire destroyed Carl Cramer?s business automobile. Carl originally paid $24,000 for the automobile and up to the time of the fire had been allowed $15,000 in depreciation. Within three months the insurance company replaced the old automobile with a new one which was worth $21,000. What is the basis of the new automobile for purposes of computing depreciation? a. $3,000 b. $9,000 c. $15,000 d. $21,000 e. $24,000,4. Tom Tanner traded in a printing press with an adjusted basis of $20,000 for a smaller press valued at $12,000. In addition to the smaller press, Tom received $3,000 in cash and was relieved of the existing liability on the old press of $5,000. What is Tom?s recognized gain? a. $0 b. $3,000 c. $4,800 d. $5,000 e. $8,000

 

Paper#11231 | Written in 18-Jul-2015

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