A Owns a Ranch in Wyoming,which B Offers to Purchase

question 74

Multiple Choice

A owns a ranch in Wyoming,which B offers to purchase.A is not willing to sell the ranch but is willing to exchange the ranch for an apartment complex in Louisiana.The complex is available for sale.B purchases the apartment complex in Louisiana from C and transfers it to A in exchange for A's ranch.The ranch and the complex each have a $1,000,000 fair market value.Which of the following is true?

• A)The transaction qualifies as a like-kind exchange for B but not for A.
• B)The transaction qualifies as a like-kind exchange for both B and A.
• C)The transaction qualifies as a like-kind exchange for A but not for B.
• D)The transaction does not qualify as a like-kind exchange for either B or A.

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Definitions:

Managerial Firefighting

The act of managers constantly dealing with crises and urgent problems rather than focusing on long-term planning and preventive measures.

Concurrent Control

A management method that involves monitoring and adjusting ongoing activities and processes to meet desired standards in real-time.

TQM Principle

Total Quality Management principles focus on long-term success through customer satisfaction, involving all members of an organization in improving processes, products, and services.

Do it Right

A principle emphasizing the importance of performing tasks correctly and efficiently to achieve desired outcomes.