Recognized gain or loss and basis of new machine

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Jannelle exchanges a machine used in her trade or business for another machine. In addition, she gives 200 shares of Intel stock which have a fair market value of $38,000 and a basis of $29,000. The old machine has an adjusted basis of $36,000 and the new machine has a fair market value of $80,000. What is the recognized gain or loss and the basis of the new machine?

a. $6,000 and $74,000.

b. $9,000 and $74,000.

c. $6,000 and $80,000.

d. $9,000 and $80,000.

e. None of the above.

Reference no: EM13148675

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