Question
Bally Ho Inc. traded one of its used trailers (cost $15,000, accumulated depreciation $13,500 for another used trailer with a fair value of $2,400. Bally
Bally Ho Inc. traded one of its used trailers (cost $15,000, accumulated depreciation $13,500 for another used trailer with a fair value of $2,400. Bally Ho also paid $300 to complete the transaction. Since the exchange will leave Bally Ho in the same economic position, this transaction lacks commercial substance. What is the gain or loss on the exchange?
- $675 gain
- $0 (no gain or loss)
- $900 gain
- $225 loss
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The Official IRS Tax Guide To Auditing Horse Activities Prepare Your Horse Operation To Withstand An IRS Audit Using The Samw Manual IRS Agents Use
Authors: IRS
1st Edition
092934670X, 978-0929346700
