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Brian Bush and Charles Chex exchange business machines. Brian givesCharles a machine with a basis of $3,500 (fair market value $3,000)plus $2,000 in cash. Charles gives Brian a machine with a basis of$5,000 and a fair market value of $5,000. What is Charles’s recognizedgain and his basis in the new machine? a. $2,000 and $5,000b. $500 and $3,500c. $1,000 and $5,000d. $0 and $3,000
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