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Sylvester owns farm machinery that has a fair market value of $157,000 and an adjusted basis of $90,000. The farm machinery is subject to a
Sylvester owns farm machinery that has a fair market value of $157,000 and an adjusted basis of $90,000. The farm machinery is subject to a liability of $47,000. Dorene would like to purchase Sylvester's farm machinery and makes the following offer
Cash -- $15,000
Assumption of Sylvester's liability
Farmland owned by Dorene having a fair market value of $95,000; the land is not encumbered by any liabilities
What is the amount of Sylvester's recognized gain if he accepts Dorene's offer?
$15,000
$20,000
$62,000
$67,000
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