Redoubt LLC traded machinery used in its business to a machinery dealer for some new machinery. Redoubt

Question:

Redoubt LLC traded machinery used in its business to a machinery for some new machinery. Redoubt originally purchased the machinery for $80,060 and it had an adjusted basis of $52,940 at the time of the exchange. The new machinery had a fair market value of $62,060. Redoubt also received $7,030 of computer equipment in the transaction. What is Redoubt's gain or loss recognized on the exchange?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...