Starling Corporation exchanges a yellow bus (used in its business) for Robin Corporation's gray bus and some garage equipment (used in its business). The assets have the following characteristics:
|
Adjusted Basis |
Fair Market Value |
| Yellow bus |
$6,000 |
|
|
$15,000 |
|
|
| Gray bus |
3,000 |
|
|
11,000 |
|
|
| Equipment |
2,000 |
|
|
4,000 |
|
|
|
a. Starling's recognized gain is ?$. Its adjusted basis in the gray bus is ?$, and its adjusted basis in the equipment is ?$.
b. Robin's recognized gain is $, and its adjusted basis in the yellow bus is ?$.