Luce Company Exchanged Investment Land for a Building to Be

question 90

Multiple Choice

Luce Company exchanged investment land for a building to be used in its business.Luce's gain on the exchange was nontaxable (because the assets were like-kind) but was included in financial statement income.Which of the following statements is false?

• A)Luce's book basis in the building received is the building's cost (FMV).
• B)Luce's tax basis in the building received equals its tax basis in the land surrendered.
• C)Luce's future depreciation deductions with respect to its tax basis in the building will be different from future depreciation expense for financial statement purposes.
• D)None of the statements is false.

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