What is Sarajanes basis in the equipment received in the exchange described in Question 16, assuming her

Question:

What is Sarajane’s basis in the equipment received in the exchange described in Question 16, assuming her basis in the equipment given up was $12,000?

a. $0
b. $12,000
c. $14,000
d. $15,000
e. None of the above

Data From Question 16:

Fred and Sarajane exchanged equipment in a qualifying like-kind exchange. Fred gives up equipment with an adjusted basis of $12,000 (fair market value of $15,000) in exchange for Sarajane’s equipment with a fair market value of $13,000 plus $2,000 cash.

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Related Book For  answer-question

Income Tax Fundamentals 2017

ISBN: 9781305872738

35th Edition

Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller

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