Question: Firm M exchanged an old asset with a $ 1 3 , 6 0 0 tax basis and a $ 3 3 , 0 0

Firm M exchanged an old asset with a $13,600 tax basis and a $33,000 FMV for a new asset worth $24,500 and $8,500 cash. Required: If the exchange is nontaxable, compute Firm Ms realized and recognized gain and tax basis in the new asset. How would your answers change if the new asset were worth only $13,000, and Firm M received $20,000 cash in the exchange?

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