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Koch traded machine 1 for machine 2. Koch originally purchased machine 1 for $76,700 and machine 1's adjusted basis was $40,850 at the time of
Koch traded machine 1 for machine 2. Koch originally purchased machine 1 for $76,700 and machine 1's adjusted basis was $40,850 at the time of the exchange. Machine 2's seller purchased it for $64,150 and machine 2's adjusted basis was $55,850 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?
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