Starling corporation exchanges a yellow bus used in its

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Reference no: EM13588840

Starling Corporation exchanges a yellow bus (used in its business) for Robin Corporation's gray bus and some garage equipment (used in its business). The assets have the following characteristics:

	Adjusted Basis	Fair Market Value
Yellow bus	$6,000	$15,000
Gray bus	3,000	11,000
Equipment	2,000	4,000

a. Starling's recognized gain is ?$. Its adjusted basis in the gray bus is ?$, and its adjusted basis in the equipment is ?$.

b. Robin's recognized gain is $, and its adjusted basis in the yellow bus is ?$.

Reference no: EM13588840

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