A taxpayer is trading real property used solely for business purposes for new real property to be used in his business. The real property originally cost

$35,000

and he has taken

$18,000

in depreciation. The old real property is currently worth

$20,000

and the new real property the taxpayer wants in exchange is only worth

$16,500

. The other party agrees to give the taxpayer a traler worth

$3,500

in addition to the new real property. What is the gain or lo5s recoonized by the taxpayer on this transaction?\ A.

$3,500

gain\ B.

$3,000

gain\ C. 50\ D.

$3,500

loss

A taxpayer is trading real property used solely for busines5 purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $18,000 in depreciation. The old real property is currently worth $20,000 and the new real property the taxpayer wants in exchange is only worth $16,500. The other party agrees to give the taxpayer a traler worth $3,500 in addition to the new real property. What is the gain or los5 reconnized by the taxpayer on this transaction? A. $3,500 gain B. $3,000 gain C. 50 D. $3,500 loss