Nagin IncTransferred an Old Asset in Exchange for a New Asset

question 101

Multiple Choice

Nagin Inc.transferred an old asset in exchange for a new asset worth $84,000 and $6,000 cash.The old asset and new asset were like-kind properties.Which of the following statements is true?

• A)If Nagin's basis in the old asset was $95,000,Nagin can recognize a $5,000 loss.
• B)If Nagin's basis in the old asset was $85,000,Nagin must recognize a $6,000 gain.
• C)If Nagin's basis in the old asset was $79,200,Nagin must recognize a $6,000 gain.
• D)None of the above is true.

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