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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.

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.