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:

Reagan

Referring to Ronald Reagan, the 40th President of the United States, known for his conservative policies, economic reforms, and role in ending the Cold War.

Party Dealignment

A trend where individuals increasingly identify themselves as independent and do not consistently support a single political party, reflecting a weakening of party loyalty.

New Deal Coalition

An alliance of interest groups and voting blocs in the United States that supported the New Deal and the Democratic Party during the presidency of Franklin D. Roosevelt.