Question: CC Company exchanged a depreciable asset with a $17,000 initial cost and a $10,000 adjusted basis for a new asset priced at $16,000. a. Assuming

CC Company exchanged a depreciable asset with a $17,000 initial cost and a $10,000 adjusted basis for a new asset priced at $16,000.
a. Assuming that the assets do not qualify as like-kind property, compute the amount and character of CC’s recognized gain and its basis in the new asset.
b. Assuming that the assets qualify as like-kind property, compute the amount and character of CC’s recognized gain and its basis in the new asset.

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