Teco Inc and MW Company Exchanged Like-Kind Assets

question 69

Multiple Choice

Teco Inc. and MW Company exchanged like-kind assets. Teco's asset had an $80,000 FMV and $53,900 adjusted tax basis, and MW's asset had an $87,500 FMV and a $28,100 adjusted tax basis. Teco paid $7,500 cash to MW as part of the exchange. Which of the following statements is false?

• A) Teco's realized gain is $26,100 and recognized gain is -0-.
• B) MW's realized gain is $59,400 and recognized gain is $7,500.
• C) Teco's basis in its newly acquired asset is $61,400.
• D) MW's basis in its newly acquired asset is $35,600.

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Definitions:

While Loops

A statement in programming that enables the repeated execution of code as long as a specified Boolean condition remains true.

Limiting Condition

A constraint or restriction defined in a program or system that limits its execution or functionality.

ExampleRecursion

ExampleRecursion typically refers to a demonstration or example that illustrates how recursion works, which is a method where the solution to a problem depends on solutions to smaller instances of the same problem.

Base Case

A condition within a recursive function that does not recurse, stopping the recursive calls and allowing the function to begin returning.