Please show your work

1.

Arthur Austen's property having an adjusted basis of $68,000 is condemned by the state government. The authorities replace his property with other qualified property which cost them $100,000. What is Arthur's basis in the new property?

Group of answer choices

$32,000

$0

$68,000

$100,000

2.

A fire destroyed Carl Cramer's business automobile. Carl originally paid $24,000 for the automobile and up to the time of the fire had been allowed $15,000 in depreciation. Within three months the insurance company replaced the old automobile with a new one which was worth $21,000. What is the basis of the new automobile for purposes of computing depreciation?

Group of answer choices

$3,000

$9,000

$15,000

$21,000

3.

Jeff Jordan exchanges a truck used in his business plus $20,000 cash for a new truck with a fair market value of $34,000. His adjusted basis in the old truck is $16,000 and its fair market value is $14,000. What is Jeff's recognized gain or loss and the basis in the new truck?

Group of answer choices

$0 and $34,000

$20,000 gain and $16,000

$0 and $36,000

$2,000 loss and $34,000

4.

David Drummond and Edward Engels exchange business cars. David gives Edward a car with a basis of $15,000 and a fair market value of $21,500. David receives from Edward a car with a basis of $12,500 (fair market value of $17,000) and $4,500 cash. What is David's recognized gain and basis in the new car?

Group of answer choices

$6,500 and $17,000

$4,500 and $15,000

$0 and $10,500

$2,000 and $12,500