Sean has an asset used in his business. He exchanges it for a like-kind asset owned by Archie. (Sean and Archie are unrelated). The basis of Sean's asset is $40,000 and he gives Archie $20,000 cash plus the asset in exchange for Archie's asset, which is worth $36,000. Archie's basis in his original asset is $10,000. What is Sean's recognized gain or loss?

		$0.
		$24,000 loss.
		$24,000 gain.
		$6,000 gain.

Income Tax