Property Is Acquired in a Qualifying Like-Kind Exchange

question 55

Multiple Choice

Property is acquired in a qualifying like-kind exchange.The acquired property is sold three months after it is acquired. Which of the following is correct?

• A)Since the holding period of the property given up in the exchange tacks to the holding period of the acquired property, the holding period of the acquired property could be long-term.
• B)The holding period of the acquired property is short-term.
• C)The holding period of property acquired in a like-kind exchange is always long-term.
• D)When property acquired in a like-kind exchange is disposed of, the holding period is not relevant.
• E)None of these.

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Definitions:

Foreign Exchange Market

A marketplace where currencies are traded internationally, allowing businesses and countries to convert currency for international trade and finance.

Aggregate Demand

The total demand for all goods and services in an economy at any given overall price level and in a given time period.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used as an indicator of inflation.

Short-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the total supply of goods and services produced by a country at various price levels in the short-run.