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    Boston exchanges a machine used in his trade or business

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    Boston exchanges a machine used in his trade or business for another machine. In addition, he gives shares of Intel stock which have a fair market value of $27,000 and a basis of $13,000. The old machine has an adjusted basis of $30,000 and the new machine has a fair market value of $80,000. What is the recognized gain or loss and the basis of the new machine?

    a. $14,000 and $57,000.
    b. $23,000 and $57,000.
    c. $14,000 and $80,000.
    d. $23,000 and $80,000.
    e. None of the above.

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