Simon Exchanged His Mustang for Michael's Econovan So That He

question 11

True/False

Simon exchanged his Mustang for Michael's Econovan so that he could go hunting. The exchange does not qualify as a like-kind exchange since the assets are personal.

---

Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting its liabilities; also known as shareholders' equity.

Liabilities

Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, that are essential but not directly tied to the production of goods.