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McDonald exchanged an old asset with a $90,000 tax basis and a $125,000 FMV for a new asset worth $25,000 and $100,000 cash. If the
McDonald exchanged an old asset with a $90,000 tax basis and a $125,000 FMV for a new asset worth $25,000 and $100,000 cash. If the exchange is nontaxable, compute McDonald realized and recognized gain and tax basis in the new asset. | ||||||||||||
Realized Gain ? | A | |||||||||||
Recognized Gain ? | B | |||||||||||
Tax Basis ? | C |
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