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Kate exchanged equipment for a car with a FMV of $30,000. The equipment has an adjusted basis of $15,000 and is subject to a $10,000

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Kate exchanged equipment for a car with a FMV of $30,000. The equipment has an adjusted basis of $15,000 and is subject to a $10,000 liability. Kate also paid $12,000 in cash. What is the amount of gain (loss) recognized on the transaction? $15,000 gain. $3,000 gain. $13,000 gain. $7,000 loss

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