Itak Company Transferred an Old Asset with a $44,300 Adjusted

question 17

Multiple Choice

Itak Company transferred an old asset with a $44,300 adjusted tax basis in exchange for a new asset worth $48,000 and $3,000 cash.Which of the following statements is false?

• A)If the exchange is taxable,Itak recognizes a $6,700 gain.
• B)If the exchange is nontaxable,Itak recognizes a $3,000 gain.
• C)If the exchange is nontaxable,Itak's tax basis in the new asset is $44,300.
• D)None of the statements is false.

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Definitions:

Observation Learning

A type of learning that occurs through observing the behaviors of others and the outcomes of those behaviors, without direct instruction.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, or preferences through study, experience, or teaching.

Extinction

in behavior science, refers to the process by which a previously reinforced behavior is weakened by ceasing to provide reinforcement.

UCS

An abbreviation for Unconditioned Stimulus, a stimulus that naturally and automatically triggers a response without any prior conditioning in behavioral psychology.