Gain recognize on the exchange

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Fred and Wilma exchanged equipment in a qualifying like-kind exchange. Fred gives up equipment with an adjusted basis of $14,000 (FMV = $15,000) in exchange for Wilma's equipment with a fair market value of $12,000 plus $3,000 cash. How much gain should Fred recognize on the exchange?

a) $3,000

b) $2,000

c) $1,000

d) $0

Reference no: EM13153220

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