Olga trades in a computer she had used in her trade or business for a new computer The old computer cost Olga $5,300 and has an adjusted basis of $800 The computer dealer gives her a $1,200 trade in allowance on the old computer, and Olga pays the remaining $5,000 price of the new computer in cash ...

The exchange of computers is a qualifying likekind exchange Olga must d ...

Olga trades in a computer she had used in her trade or business for a new computer.

Question:

Olga trades in a computer she had used in her trade or business for a new computer. The old computer cost Olga $5,300 and has an adjusted basis of $800. The computer gives her a $1,200 trade-in allowance on the old computer, and Olga pays the remaining $5,000 price of the new computer in cash. What are Olga’s realized and recognized gains on the trade-in of her old computer? What is the basis of the new computer?

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...