mckenzie traded drilling equipment used in his business for similar equipment with slightly different features when the fair market value of both machines was $90,000. mckenzie originally purchased his machine for $140,000, and his adjusted basis in it was $75,000 at the time of the exchange. the other party had purchased his machine for $200,000 and his adjusted basis was $85,000 at the time of the exchange. what is mckenzie's adjusted basis in machine 2 after the exchange?
