15- Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Koch originally purchased Machine 1 for $76,400, and Machine 1's adjusted basis was $40,700 at the time of the exchange. Machine 2's seller purchased it for $64,300 and Machine 2's adjusted basis was $55,700 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

• $50,000.

• $40,700.

• $76,400.

• None of the choices are correct.

• $55,700.