Which of the Following Exchanges of Property Are Like-Kind Exchanges

question 3

Multiple Choice

Which of the following exchanges of property are like-kind exchanges?
I.Convenience store owner trades several cases of potato chips for a cash register.
II.A completely rented apartment building traded for a parts supply warehouse to use in business.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Explanation

A statement or account that makes something clear or understandable, often used to provide reasoning or details.

Unearned Consulting Fees

Money received for consulting services that have not yet been provided, representing a liability until the service is performed.

Normal Balance

The side (debit or credit) of an account that is typically increased, reflecting a fundamental principle in accounting.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.