Fred and Sarajane exchanged equipment in a qualifying like-kind exchange. Fred gives up equipment with an adjusted basis of $12,000 (fair market value of $15,000) in exchange for Sarajane's equipment with a fair market value of $13,000 plus $2,000 cash. What is Sarajane's basis in the equipment received in the exchange, assuming her basis in the equipment given up was $12,000? a.$15,000 b.$14,000 c.$12,000 d.$0 e.None of these choices are correct.

The answer is B. $14000 Please show me the steps how to get the answer. Thanks!