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Hondo traded real property used in his business to a dealer in exchange for new, like-kind real property he will hold for investment. Hondo originally

Hondo traded real property used in his business to a dealer in exchange for new, like-kind real property he will hold for investment. Hondo originally purchased the property for $72,000 and it had an adjusted basis of $42,000 at the time of the exchange. The new property had a fair market value of $58,300. Hondo also received $5,200 cash in the transaction. What is Hondos recognized gain or loss on the exchange?

Under the same facts as the previous problem, what is Hondos basis in the new equipment?

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