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trading in equipment for new equipment in s corp. old equipemnt: purchase price: $5000 accumulated depriciation on books $4000 FMV:4000 new equipment: purchase price: $14000

trading in equipment for new equipment in s corp.

old equipemnt:

purchase price: $5000

accumulated depriciation on books $4000

FMV:4000

new equipment:

purchase price: $14000

what would be the tax implications of buying the new equipment and trading the old for a discount of the fmv in the purchase.

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