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Elaine exchanges a lot of land that is used exclusively for business purposes for another lot that also is to be used exclusively for business.

Elaine exchanges a lot of land that is used exclusively for business purposes for another lot that also is to be used exclusively for business. The adjusted basis for the old lot is $18,000, and its FMV is $14,500. a. Calculate Elaines recognized gain or loss on the exchange. b. Calculate Elaines basis for the lot she receives.

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