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.© BrainMass Inc. brainmass.com June 21, 2018, 10:42 am ad1c9bdddf
a. Amount realized (value of laser printer)=$5,500
Adjusted basis=Initial adjusted basis + cash=$3,000 + ...
A calculation for Bonnie's exchange between her computer and a printer.