Question: Koch traded machine 1 for machine 2 when the fair market value of both machines was $50,000. Koch originally purchased machine 1 for $76,600 and

Koch traded machine 1 for machine 2 when the fair market value of both machines was $50,000. Koch originally purchased machine 1 for $76,600 and machine 1's adjusted basis was $40,800 at the time of the exchange. Machine 2's seller purchased it for $64,200 and machine 2's adjusted basis was $55,800 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

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