Eliot IncTransferred an Old Asset with a $53,100 Adjusted Tax Basis

question 44

Multiple Choice

Eliot Inc.transferred an old asset with a $53,100 adjusted tax basis plus $5,000 cash in exchange for a new asset worth $75,000.Which of the following statements is false?

• A)The old asset's FMV is $70,000.
• B)If the exchange is nontaxable,Eliot's recognized gain is $5,000.
• C)If the exchange is nontaxable,Eliot's tax basis in the new asset is $58,100.
• D)None of the statements is false.

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Definitions:

Sales Presentation

A pitch or demonstration given by a salesperson to persuade potential buyers on the value and benefits of a product or service.

Objections

Expressions of concern or reasons for hesitance provided by potential customers during the sales process.

Deny Objections

A sales tactic where the salesperson refutes or challenges a customer's concerns or hesitations.

Incorrect Information

False or inaccurate data provided, either unintentionally or deliberately, which can lead to misunderstandings or errant decisions.