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Ryan exchanged a car that he used in his business for the past 3 years for a new truck with a FMV of $25,000. This
Ryan exchanged a car that he used in his business for the past 3 years for a new truck with a FMV of $25,000. This transaction took place at the end of the year. The adjusted basis of the car was $8,000 at the beginning of the year of disposition. Ryan paid $4,000 cash and assumed a note payable of $10,000 to be paid in $2,000 increments over the next 5 years. Ryan's depreciation on the car for the year of disposition was $2,500. What is the gain (loss) recognized on the transaction? $5,500 gain. $3,000 gain. $15,500 gain. $11,000 gain
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