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A taxpayer trades in a building used solely for business purposes for another building to be used in his business. The old building originally cost $35,000 and he has taken $18,000 in depreciation. The old building is currently worth $20,000 and the new building the taxpayer wants in exchange is worth $20,000. No other cash or property is exchanged in the transaction. What is the gain or loss realized by the taxpayer on this transaction? OA. $0 O B. C. $3,000 loss $3,000 gain D. $15,000 loss Activate Win

A taxpayer trades in a building used solely for business purposes for another building to be used in his business. The old building originally cost $35,000 and he has taken $18,000 in depreciation. The old building is currently worth $20,000 and the new building the taxpayer wants in exchange is worth $20,000. No other cash or property is exchanged in the transaction. What is the gain or loss realized by the taxpayer on this transaction? OA. $0 O B. C. $3,000 loss $3,000 gain D. $15,000 loss Activate Win

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A taxpayer trades in a building used solely for business purposes for another building to be used in his business. The old building originally cost $35,000 and he has taken $18,000 in depreciation. The old building is currently worth $20,000 and the new building the taxpayer wants in exchange is worth $20,000. No other cash or property is exchanged in the transaction. What is the gain or loss realized by the taxpayer on this transaction? OA. $0 O B. $3,000 loss C. $3,000 gain D. $15,000 loss Activate Win
Transcribed Image Text:A taxpayer trades in a building used solely for business purposes for another building to be used in his business. The old building originally cost $35,000 and he has taken $18,000 in depreciation. The old building is currently worth $20,000 and the new building the taxpayer wants in exchange is worth $20,000. No other cash or property is exchanged in the transaction. What is the gain or loss realized by the taxpayer on this transaction? OA. $0 O B. $3,000 loss C. $3,000 gain D. $15,000 loss Activate Win
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