Tauber Inc

question 81

Multiple Choice

Tauber Inc. and J&I Company exchanged like-kind assets. Tauber's asset had a $17,500 FMV and $3,000 adjusted tax basis, and J&I's asset had a $19,000 FMV and a $9,000 adjusted tax basis. Tauber paid $1,500 cash to J&I as part of the exchange. Which of the following statements is false?

• A) Tauber's realized gain is $14,500 and recognized gain is -0-.
• B) J&I's realized gain is $10,000 and recognized gain is -0-.
• C) Tauber's basis in its newly acquired asset is $4,500.
• D) J&I's basis in its newly acquired asset is $9,000.

---

Definitions:

Mean IQ Score

The average score derived from standardized tests designed to measure human intelligence.

Flynn Effect

The observed substantial and long-term increase in intelligence test scores, measured in many parts of the world from roughly 1930 to the present day.

Heterosis

The phenomenon by which the offspring of genetically diverse parents exhibit qualities or performances superior to either parent.

Genetic Explanation

The rationale for the physical and behavioral characteristics of organisms, including humans, as influenced by the genes inherited from their parents.