[cpaswag]

Leker exchanged a van that was used exclusively for business and had an adjusted tax basis of $20,000 for a new van. The new van had a fair market value of $10,000, and Leker also received $3,000 in cash. What was Leker’s tax basis in the acquired van?
Answer was 17,000 but can someone show me formula to find out how

[Anonymous]

AB old asset ($20,000)
+ gain recognized ($0)
– boot received ($3,000)
= $17,0000

**There is no gain recognized because the realized gain of $0 is less than boot received ($3,000)

[Author]

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