Which of the Following Qualify as a Like-Kind Exchange

question 57

Multiple Choice

Which of the following qualify as a like-kind exchange?
-A personal residence for a vacation home.

• A)qualifies as a like-kind exchange
• B)does not qualify as a like-kind exchange

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Definitions:

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product, excluding fixed overhead costs.

Absorption Costing

Absorption Costing is a method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Inventory Decreases

A reduction in the quantity of goods or materials held in stock, which can impact production, sales, and the overall financial health of a business.

Variable Costing

An accounting method that includes only variable costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and inventory valuation.