Benito bought a copy machine in March 2017 for $3,000. In May 2019 he exchanged the copy machine in a like-kind exchange for another copy machine with a FMV of $4,000. In June 2019, he sold the copy machine he had just received for $4,200. What is Benito\\\'s gain/loss from the sale?

Please explain your answer, it is helpful.

a. $2,000 and $5,000

b. $500 and $3,500

c.$1,000 and $5,000

d. $0 and $3,000

Answer rating: 100% (QA)

Given Cost of machine 3000 Exchange with a like kind machine of 4000 Sel... View the full answer