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Question 1 - In section 1031 exchange, A exchanged business real estate had adjusted basic 18000 for other real estate with fair market value of 15000 and 4000 cash. How much gain does she recognize?
a. none of above
b. 1000
c. 3000
d. 4000
Question 2 - In a section 1031, A traded in his old truck with adjusted basis 13800 for new one with FMV 30000. What is adjusted basis of new truck?
A.13800,
B. 18000,
C. 18000,
D. 30000
On December 31, 2007, Drew Company issued $170,000, five-year bonds for $155,000. The stated rate of interest was 6 percent and interest is paid annually on December 31. What would be the necessary journal entry?
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