Question
Ralph exchanged a toolbox used in his company for a larger toolbox owned by a neighboring business. The toolboxes were purchased within a year of
Ralph exchanged a toolbox used in his company for a larger toolbox owned by a neighboring business. The toolboxes were purchased within a year of each other. Ralph's basis in his toolbox was $8,250. The basis of the larger toolbox was $7,999. Ralph paid and attorney $1,100 to prepare the contract of the exchange. Ralph gave his toolbox to the other business on 12/15/2018. The other business gave Ralph the larger toolbox on 1/31/2019. What is the amount of income Ralph's business will report in the current tax year?
a) $310,289
b) $320,382
c) $320,131
d) $311,032
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