LiO Company Transferred an Old Asset with a $13,600 Adjusted

question 104

Multiple Choice

LiO Company transferred an old asset with a $13,600 adjusted tax basis in exchange for a new asset worth $11,000 and $1,500 cash.Which of the following statements is false?

• A)If the exchange is taxable,LiO recognizes an $1,100 loss.
• B)If the exchange is nontaxable,LiO recognizes no loss.
• C)If the exchange is nontaxable,LiO's tax basis in the new asset is $12,100.
• D)None of the statements is false.

---

Definitions:

Structural Level

An analysis or approach focusing on the arrangement and organization of components within a system.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, organization, or community.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Structural Change

Major shifts or alterations in the organizational, economic, or social framework of an entity or society.