Amount Realized. Tracy owns a nondepreciable capital asset
held for investment. The asset was purchased for $250,000 six years earlier and
is now subject to a $75,000 liability. During the current year, Tracy transfers
the asset ro Tim in exchange for $94,000 cash and a new automobile with a
$50,000 FMV ro be used by Tracy for personal use; Tim assumes the $75,000
liability. Determine the amount of Tracy’s LTCG or LTCL.
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