All of the assets are $1231 assets: automobile $2,000 gain, machinery $5,000 gain, furniture $1,000 loss, and equipment $9,000 loss. This results in $7,000 ordinary gain and $10,000 1231 loss. The $1231 look-back rule only applies when there is a net 1231 gain. The general rule regarding the exchanged basis in a like-kind exchange is: O The basis is equal to the fair market value of the new property. The basis is equal to the fair market value of the old property. O The basis is equal to the adjusted basis of the old property. O The basis is equal to the cost basis of the old property. All of these.