Maple Company owns a machine adjusted basis of 90 000 fair
Maple Company owns a machine (adjusted basis of $90,000; fair market value of $125,000) that it uses in its business. Maple exchanges it for another machine (worth $100,000) and stock (worth $25,000). Determine Maple’s:
a. Realized and recognized gain or loss on the exchange.
b. Basis in the new machine.
c. Basis in the stock Maple received.
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