Which One of the Following Qualifies as a Like-Kind Exchange

question 58

Multiple Choice

Which one of the following qualifies as a like-kind exchange?

• A)An auto used by a business that was traded in for a new model.
• B)A home owned and lived in by a taxpayer exchanged for a new personal residence.
• C)IBM stock exchanged for Exxon stock.
• D)Land used in business traded in for a different parcel of land also for business use.
• E)None of the above are like-kind property.

---

Definitions:

Residual Income

The amount of income that an entity has after all personal debts and expenses, including the mortgage, have been paid.

Minimum Required Rate

The lowest acceptable rate of return on investment or performance metric that a company or project must achieve.

Casket Division

A business unit or segment within a company that specializes in the production or sale of caskets.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue, such as machinery, equipment, and inventory.