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:

Thyroid Cartilage

A large cartilage that forms the anterior wall of the larynx and provides support and protection; commonly known as the Adam's apple.

Cricoid Cartilage

The ring-shaped cartilage of the larynx, located below the thyroid cartilage, serving as a point of attachment for muscles, ligaments, and membranes involved in opening and closing the airway and in speech production.

Epiglottis

A piece of cartilage at the tongue's base that moves down when swallowing to block the windpipe's entrance.

Arytenoid Cartilage

Paired cartilages located in the larynx that are crucial for the movement and tension of the vocal cords.