Identify Which of the Following Statements Is True

question 82

Multiple Choice

Identify which of the following statements is true.

• A)The transferor must recapture depreciation when exchanging Sec. 1245 property in all transactions coming under Sec. 351.
• B)A corporation receiving property in a Sec. 351 exchange can select any MACRS depreciation method for the asset.
• C)When depreciable property is transferred to a corporation in a Sec. 351 exchange in which no gain is recognized, the corporation must continue to use the transferor's depreciation method and recovery period for the property.
• D)All of the above are false.

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Definitions:

Cash Receipt

A document or electronic record acknowledging the receipt of cash from a transaction.

Voucher System

A control mechanism in accounting where vouchers are prepared as evidence for every transaction or payment.

Supporting Documents

Paperwork or electronic files that provide evidence or back up for transactions recorded in an accounting system.

Electronic Funds Transfers

Digital transfers of money from one bank account to another either within the same financial institution or across different institutions.