What is toms recognized gain


Tom Tanner traded in a printing press with an adjusted basis of $20,000 for a smaller press valued at $12,000. In addition to the smaller press, Tom received $3,000 in cash and was relieved of the existing liability of $5,000 on the old press. What is Tom's recognized gain?

A. $0

B. $3,000

C. $4,800

D. $5,000

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Business Management: What is toms recognized gain
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