In June $2022,$ Sue exchanges a sport$-$utility vehicle $($adjusted basis of $$53,920$; fair market value of $$67,400)$ for cash of $$10,110$ and a pickup truck $($fair market value of $$57,290).$ Both vehicles are held for business use. Sue believes that her basis for the truck is $$57,290.$

Is Sue correct? Why or why not? As part of your response, compute Sue$$s realized gain or loss $($and any recognized gain or loss$)$ on the exchange.

Yes

$.$ She must treat the transaction as

a regular sale or exchange

$.$ Therefore the basis of the new property is $fill in the blank $3$

$60,660$ wrong

and Sue has a gain recognized gain of $fill in the blank $4$

$3,370$ wrong