If There Is a Like- Kind Exchange of Property Between

question 1875

Multiple Choice

If there is a like- kind exchange of property between related parties, how long do they have to wait to dispose of the property received in order to avoid having to recognize any gain on the exchange?

• A) 2 years
• B) 6 months
• C) 1 year
• D) no waiting period

---

Definitions:

Incurred

Costs or expenses that a company has obtained or become responsible for as a result of its operations.

Accrual-Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability until the obligation is fulfilled.

Unearned Rent

is income received by a landlord for rent that has been paid in advance by a tenant but has not yet been earned.