Question
Benito bought a copy machine in March 2017 for $3,000. In May 2019 he exchanged the copy machine in a like-kind exchange for another copy
Benito bought a copy machine in March 2017 for $3,000. In May 2019 he exchanged the copy machine in a like-kind exchange for another copy machine with a FMV of $4,000. In June 2019, he sold the copy machine he had just received for $4,200. What is Benito's gain/loss from the sale?
Please explain your answer, it helpful!
a. $1200 STCG
b. $200 STCG
c. $1200 LTCG
d. no gain or loss recognized
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Auditing Assurance And Risk
Authors: W. Robert Knechel, Steve Salterio, Brian Ballou
3rd Edition
0324313187, 9780324313185
