Itak Company Transferred an Old Asset with a $44,300 Adjusted

question 17

Multiple Choice

Itak Company transferred an old asset with a $44,300 adjusted tax basis in exchange for a new asset worth $48,000 and $3,000 cash.Which of the following statements is false?

• A)If the exchange is taxable,Itak recognizes a $6,700 gain.
• B)If the exchange is nontaxable,Itak recognizes a $3,000 gain.
• C)If the exchange is nontaxable,Itak's tax basis in the new asset is $44,300.
• D)None of the statements is false.

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Definitions:

Net Requirements

The total demand for a product or component minus the inventory already on hand or on order, used in manufacturing and inventory management.

Gross Requirements

The total amount of materials or components needed to fulfill production or sales orders, before considering inventory on hand or scheduled receipts.

Component N

Refers specifically to an undefined or unspecified element within a system, implying a placeholder name for any part or aspect under consideration.

Product Structure Tree

A hierarchical representation of the components and sub-components required to build a product, illustrating the relationship between parts.