Question: Suppose Joe instead received a machine worth $2,000, a piece of jewelry worth $12,000 and the buyer assumes Joe's $3,000 mortgage on the land.

Suppose Joe instead received a machine worth $2,000, a piece of jewelry worth $12,000 and the buyer assumes Joe's $3,000 mortgage on the land. Does Joe realize a gain or loss and if so, how much is it?

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