Kornek Inc

question 62

Multiple Choice

Kornek Inc.transferred an old asset with a $200,000 adjusted tax basis plus $12,000 cash in exchange for a new asset worth $260,000.Which of the following statements is false?

• A)If the exchange is taxable,Kornek recognizes a $48,000 gain.
• B)If the exchange is nontaxable,Kornek recognizes a $12,000 gain.
• C)If the exchange is nontaxable,Kornek's tax basis in the new asset is $212,000.
• D)None of the statements is false.