Question: Bob exchanges an auto, used in his business for another .

Question:

Bob exchanges an auto, used in his business for another .

Bob receives

Auto worth $20,000

Cash $5,000

Total $25,000

Bob's basis in his auto $10,000

Determine

(a) Bob's gain or loss

(b) Bob's taxable gain or loss

(c) Bob's basis in the new auto

Assume this qualifies as a 1031 exchange.