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:

Marginal Costs

Additional costs incurred when increasing the quantity of output by one unit.

Copper Monopolists

Entities that exclusively control the production and sales of copper, often resulting in the ability to manipulate market prices.

Brass Industry

Refers to the sector of the economy dedicated to the production and sale of brass products and materials.

Demand Function

Describes the relationship between the quantity of a good consumers are willing to buy and the price of the good, holding other factors constant.