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Calculate Bonnie's Gain or Loss for her Printer

Bonnie owns a personal computer (adjusted basis of $3,000) that she uses exclusively in her business. Bonnie transfers the computer and cash of $1,500 to Green Computers for a laser printer (worth $5,500) also to be used in her business.

a. Calculate Bonnie's recognized gain or loss on the exchange.

b. Calculate Bonnie's basis for the printer.

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Solution Preview

a. Amount realized (value of laser printer)=$5,500
Adjusted basis=Initial adjusted basis + cash=$3,000 + ...

Solution Summary

A calculation for Bonnie's exchange between her computer and a printer.