Question: Let's say that your client paid $ 5 , 0 0 0 cash for a boat, plus he gave the seller his old boat, which

Let's say that your client paid $5,000 cash for a boat, plus he gave the seller his old boat, which was worth $1,000. What is the taxpayer's basis in the new boat?
$5,000
$5,500
$6,000
$4,000
Let's say that your client paid $ 5 , 0 0 0 cash

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Let's say that your client paid $ 5 , 0 0 0 cash for a boat, plus he gave the seller his old boat, which was worth $ 1 , 0 0 0 . What is the taxpayer's basis in the new boat?

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