Question: Elaine exchanges a van that is used exclusively for business purposes for another van that also is to be used exclusively for business. The adjusted

Elaine exchanges a van that is used exclusively for business purposes for another van that also is to be used exclusively for business. The adjusted basis for the old van is $18,000, and its FMV is $14,500.
a. Calculate Elaine's recognized gain or loss on the exchange.
b. Calculate Elaine's basis for the van she receives.

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