What are the tax consequences to brown of the exchange

Reference no: EM13293047

Brown Construction, Inc., is in the road construction business. Brown exchanges a grader used in its business and $45,000 in cash for a scraper to be used in its business. The adjusted basis of the grader is $50,000, and the fair market value of the scraper is $102,000.

• What are the tax consequences to Brown of the exchange?

Reference no: EM13293047

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