Exchanged equipment in qualifying-like-kind exchange

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Reference no: EM13874861

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

A. $3,000

B. $2,000

C. $1,000

D. $0

E. None of the above

Reference no: EM13874861

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