Tracy owns a nondepreciable capital asset held for

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Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $250,000 six years earlier and is now subject to a $75,000 liability. During the current year, Tracy transfers the asset Tim in exchange for $94,000 cash and a new automobile with a $50,000 fair market value (FMV) to be used by Tracy for personal use; Tim assumes the $75,000 liability.

a. Determine the amount of Tracy's long-term capital gain (LTCG) or long-term capital loss (LTCL).
b. show your calculation, labeling each line item.

Reference no: EM13599727

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