Question: 2. Bud exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine

2. Bud exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2,000 cash. a. What is his realized gain/loss? b. What is his recognized gain/loss? c. What is his basis in the new property?

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