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General Corporation owns equipment which cost $70,000 and has a $44000 adjusted basis. General exchanges the equipment for other equipment $42000 FMV and marketable securities $30000 FMV

General Corporation owns equipment which cost $70,000 and has a $44,000 adjusted basis. General exchanges the equipment for other equipment ($42,000 FMV) and marketable securities ($30,000 FMV). Determine the following:

a. Realized gain

b. Recognized gain

c. Gain treated as ordinary income

d. Gain treated as Sec. 1231 gain

e. Basis of marketable securities received

f. Basis of equipment received

Apr 02 2020 View more View Less

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