Luke trades his baseball card collection for an automobile. The automobile is worth $11,000, and Luke assumes

Question:

Luke trades his baseball card collection for an automobile. The automobile is worth $11,000, and Luke assumes the $3,000 loan on the car. Luke has $3,500 invested in his baseball card collection.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.