Question: Justin exchanges a precision saw that is used in his business for another precision saw. The old precision saw had an adjusted basis of $8,000

Justin exchanges a precision saw that is used in his business for another precision saw. The old precision saw had an adjusted basis of $8,000 and the new precision saw has a fair market value of $29,000. What is Justin's recognized gain or loss and the basis of the new precision saw?

Group of answer choices:

$0; $8,000

$0; $29,000

$21,000; $8,000

$21,000; $29,000

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