14.Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land for $28,000. The new land had a fair market value of $35,000. Arlington also received $2,000 of office equipment in the transaction. What is Arlington' gain or Loss recognized on the exchange. A) $o B) $2,000 C) $7,000 D) $9,000 E) None of the choices are correct. 15. The general rule regarding the exchanged basis in the new property received in a like-kind exchange is: A) The basis is equal to the fair market value of the new property. B) The basis is equal to the fair market value of the old property C) The basis is equal to the adjusted basis of the old property D) The basis is equal to the cost basis of the old property. E) All of the choices are correct. 16. Why does $1250 recapture generally no longer apply? A) Congress repealed the code section. B) Real property is depreciated using the straight-line method after 1986. C) $1245 recapture humps$1250 recapture. D) Because unrecaptured $1250 gains now apply to all taxpayers instead. E) None of the choices are correct. 17.Bozeman sold equipment that it uses in its business for $80,000. Bozeman bought the equipment two years ago for $75,000 and has claimed $20,000 of depreciation expense. What is the amount and character of Bozeman's gain or loss? A) $25,000 $1231 gain. B) $20,000 ordinary gain, and $5,000 $1231 gain. C) $5,000 ordinary gain, and $20,000 $1231 gain. D) $25,000 capital gain. E) None of the choices are correct. 18. Which of the following does not ultimately result in a capital gain or loss? A) Sale of a personal use asset. B) Sale of inventory. C) Gain on equipment used in a trade or business held for more than one year,if it is the only asset sale during the year. D) Sale of capital stock in another company. E) None of the choices are correct. 14.Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land for $28,000. The new land had a fair market value of $35,000. Arlington also received $2,000 of office equipment in the transaction. What is Arlington' gain or Loss recognized on the exchange. A) $o B) $2,000 C) $7,000 D) $9,000 E) None of the choices are correct. 15. The general rule regarding the exchanged basis in the new property received in a like-kind exchange is: A) The basis is equal to the fair market value of the new property. B) The basis is equal to the fair market value of the old property C) The basis is equal to the adjusted basis of the old property D) The basis is equal to the cost basis of the old property. E) All of the choices are correct. 16. Why does $1250 recapture generally no longer apply? A) Congress repealed the code section. B) Real property is depreciated using the straight-line method after 1986. C) $1245 recapture humps$1250 recapture. D) Because unrecaptured $1250 gains now apply to all taxpayers instead. E) None of the choices are correct. 17.Bozeman sold equipment that it uses in its business for $80,000. Bozeman bought the equipment two years ago for $75,000 and has claimed $20,000 of depreciation expense. What is the amount and character of Bozeman's gain or loss? A) $25,000 $1231 gain. B) $20,000 ordinary gain, and $5,000 $1231 gain. C) $5,000 ordinary gain, and $20,000 $1231 gain. D) $25,000 capital gain. E) None of the choices are correct. 18. Which of the following does not ultimately result in a capital gain or loss? A) Sale of a personal use asset. B) Sale of inventory. C) Gain on equipment used in a trade or business held for more than one year,if it is the only asset sale during the year. D) Sale of capital stock in another company. E) None of the choices are correct