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Question: Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,950. Koch originally purchased Machine 1 for $75,100, and Machine 1's adjusted basis was $40,050 at the time of the exchange. Machine 2's seller purchased it for $64,950 and Machine 2's adjusted basis was $55,050 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?
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