Mary traded furniture used in her business to a furniture dealer for some new furniture.  Mary originally purchased the furniture for $45,000 and it had an adjusted basis of $20,000 at the time of the exchange.  The new furniture had a fair market value of $40,000.  Mary also gave $4,000 to the dealer in the transaction.  What is Mary's adjusted basis in the new furniture after the exchange?

Answer rating: 100% (QA)

Answer To solve this problem we need to calculate Marys adjusted basis in the new furniture a... View the full answer