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1. Benito bought a copy machine in March 2017 for $3,000. In May 2019 he exchanged the copy machine in a like-kind exchange for another copy machine with a FMV of $4,000. In June 2019, he sold the copy machine he had just received for $4,200. What is Benito's gain/loss from the sale?

Group of answer choices

$1,200 short-term gain

$200 short-term gain

$1,200 long-term gain

No gain/loss is recognized

2.

Bobby and Betty Bennett sold for $450,000 in October of 2013 their primary residence that they had purchased in 2003 for $200,000. They made major capital improvements during their 10-year ownership totaling $40,000. What is their recognized gain?

Group of answer choices

$250,000

$210,000

$0

$450,000

3.

Bobby and Betty Bennett sold for $800,000 in October of 2013 their primary residence that they had purchased in 2003 for $200,000. They made major capital improvements during their 10-year ownership totaling $40,000. What is their recognized gain??

Group of answer choices

$560,000

$500,000

$310,000

$60,000

4.

Brian Bush and Charles Chex exchange business machines. Brian gives Charles 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 recognized gain and his basis in the new machine?

Group of answer choices

$2,000 and $5,000

$500 and $3,500

$1,000 and $5,000

$0 and $3,000

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