Eliot IncTransferred an Old Asset with a $53,100 Adjusted Tax Basis

question 44

Multiple Choice

Eliot Inc.transferred an old asset with a $53,100 adjusted tax basis plus $5,000 cash in exchange for a new asset worth $75,000.Which of the following statements is false?

• A)The old asset's FMV is $70,000.
• B)If the exchange is nontaxable,Eliot's recognized gain is $5,000.
• C)If the exchange is nontaxable,Eliot's tax basis in the new asset is $58,100.
• D)None of the statements is false.

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Definitions:

Expectations

Socially constructed assumptions about how individuals should behave or what outcomes should occur in specific contexts.

Class Status

The ranking of an individual or group in a hierarchical social structure, often based on wealth, profession, education, or lineage.

Max Weber

A German sociologist, philosopher, and political economist whose ideas profoundly influenced social theory and social research.

Pierre Bourdieu

A French sociologist who developed key concepts such as cultural capital, habitus, and field to explain social stratification and power dynamics.