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Problem 1: Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land for $37,000. The new land had a fair market value of $39,500. Arlington also received $11,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?
Multiple Choice
A- $0.B- $11,000.C- $2,500.D- $13,500.E- None of the choices are correct.
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