purchascd T LWO years of the cohversion. The replacement property may not have been owned by the taxpayer prior to the conversion or the threat of condemnation. Question 7 (3 points) M traded in her business computer at a local dealer. Her cost in the old machine was $3,500 and her basis was $1,470. She paid $1,500 cash in the trade for a computer worth $4,000 How much is M's recognized gain or loss, and what is her basis in the new computer, respectively? $0 and $1,470 $0 and $2.970 $1,030 and $4,000 $470 and $3,500 None of the above. Question 8 (3 points) sted basis of $40,000 for another investment land with a fair market value of $50,000 and he also receives $12,000 in cash