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In 2014, Mr. Jones a Landscape Co. Owner traded: Concrete ready mix truck and general purpose truck used in the business to Ms. Susie who
In 2014, Mr. Jones a Landscape Co. Owner traded: Concrete ready mix truck and general purpose truck used in the business to Ms. Susie who is a truck dealer. For an Ore truck and a general purpose truck and $1, 000 cash.
Please illustrate the calculations for the : (1) adjusted basis (cost basis/acquisition cost) of the properties (acquisition cost); and (2) amount of gain/loss realized on the exchange: (3) Will he need to pay tax on the amount gained from the trade? Why or why not? Please explain (use some tax laws etc.).
The adjusted basis and fair market value of the items traded are as follows: Adjusted Fair Market Basis Value Concrete ready mix truck $30,000 $36,000 General purpose truck 19,000 18,000 Ore truck 32,000 General purpose truck 21,000 Cash 1,000Step by Step Solution
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