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What is julie new adjusted basis in the newly traded boat

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Reference no: EM133573544

Question: Julie and Robert each owned a luxury boat. The boats are used for a charter business. Robert approached Julie about trading boats, and she agreed. The adjusted basis of Julie's boat is $125,000, and the adjusted basis of Robert's boat is $130,000. Robert and Julie agreed to have both boats painted prior to the trade. Robert paid $2,500 to have his boat painted, and Julie paid $3,500 to have her boat painted. What is Julie's new adjusted basis in the newly traded boat?

 

 

Reference no: EM133573544

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