A taxpayer is trading in an automobile used solely for business purposes for another automobile to be used in his business. The automobile originally cost $35,000 and he has taken $18,000 in depreciation. The old automobile is currently worth $20,000, and the new automobile taxpayer wants in exchange is worth $20,000. No other cash or property is exchanged in the transaction. What is the taxpayer's basis in the new automobile received?

Answer rating: 100% (QA)

The automobile original cost 35000 Less Depreciation 18000 WDVBook Value 17000 Old automob... View the full answer