During the current year, Daniel James exchanges a truck used in his business for a new truck.
Question:
During the current year, Daniel James exchanges a truck used in his business for a new truck. Daniel’s basis in the truck is $18,000, and the truck is subject to a liability of $8,000, which is assumed by the other party to the exchange.
Daniel receives a new truck that is worth $22,000. Calculate Daniel’s recognized gain on the exchange and his basis in the new truck.
Recognized gain $ ____________ Basis in the new truck $ ____________
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Related Book For 
Income Tax Fundamentals 2011
ISBN: 9780538469197
29th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller
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