Identify Which of the Following Statements Is True

question 82

Multiple Choice

Identify which of the following statements is true.

• A)The transferor must recapture depreciation when exchanging Sec. 1245 property in all transactions coming under Sec. 351.
• B)A corporation receiving property in a Sec. 351 exchange can select any MACRS depreciation method for the asset.
• C)When depreciable property is transferred to a corporation in a Sec. 351 exchange in which no gain is recognized, the corporation must continue to use the transferor's depreciation method and recovery period for the property.
• D)All of the above are false.

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Definitions:

Mechanical Comprehension

The ability to understand and apply mechanical concepts and principles to solve problems.

Test Category

A classification or grouping of tests based on their similar characteristics or the purpose they serve.

Clerical Test Battery

A set of standardized tests designed to measure abilities important for success in clerical and administrative positions, such as typing speed, accuracy, and filing capabilities.

Test Category

A classification of tests based on their purpose, content, or the skills they assess.