LO.5 In 2018, Sue exchanges a sport-utility vehicle (adjusted basis of $16,000; fair market value of $19,500)

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LO.5 In 2018, Sue exchanges a sport-utility vehicle (adjusted basis of $16,000; fair market value of $19,500) for cash of $2,000 and a pickup truck (fair market value of $17,500). Both vehicles are for business use. Sue believes that her basis for the truck is $17,500. Is Sue correct?

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