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:

Maximin Strategy

A decision rule used in game theory and decision theory aiming to maximize the minimum payoff.

Dominant Strategies

A strategy in game theory that yields the best outcome for a player, no matter what the other players do.

Pollute

To contaminate the natural environment with harmful or poisonous substances, adversely affecting air, water, soil, and ecosystems.

Constant-Sum Game

A situation in game theory where the total gains and losses among participants are distributed equally, so that the sum of benefits and losses is constant.