Kornek Inc

question 62

Multiple Choice

Kornek Inc.transferred an old asset with a $200,000 adjusted tax basis plus $12,000 cash in exchange for a new asset worth $260,000.Which of the following statements is false?

• A)If the exchange is taxable,Kornek recognizes a $48,000 gain.
• B)If the exchange is nontaxable,Kornek recognizes a $12,000 gain.
• C)If the exchange is nontaxable,Kornek's tax basis in the new asset is $212,000.
• D)None of the statements is false.

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Definitions:

Familiar Figures

Individuals who are well-known or regularly encountered, often providing a sense of security or comfort.

Ugandan Infants

Newborns or very young children who are natives or residents of Uganda, a country in East Africa.

Indiscriminate Attachment

The display of attachment behaviors toward any person.

Specific Attachment

The strong emotional bond that develops between an infant and a particular caregiver, usually forming by the age of 7 to 9 months.