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Kim owns equipment that is used exclusively in her business. The equipment has an adjusted basis of $ 1 1 , 2 0 0 (

Kim owns equipment that is used exclusively in her business. The equipment has an adjusted basis of $11,200(FMV $6,350). Kim
transfers the equipment and $2,900 cash to David for other equipment (also used for business purposes) that has an FMV of $9,250.
Required:
a. What is Kim's recognized gain or loss on the exchange?
b. What is Kim's adjusted basis in the equipment?
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