LiO Company Transferred an Old Asset with a $13,600 Adjusted

question 104

Multiple Choice

LiO Company transferred an old asset with a $13,600 adjusted tax basis in exchange for a new asset worth $11,000 and $1,500 cash.Which of the following statements is false?

• A)If the exchange is taxable,LiO recognizes an $1,100 loss.
• B)If the exchange is nontaxable,LiO recognizes no loss.
• C)If the exchange is nontaxable,LiO's tax basis in the new asset is $12,100.
• D)None of the statements is false.

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Definitions:

Receptor Proteins

Proteins located on cell membranes or within cells that bind to specific molecules like hormones, neurotransmitters, or growth factors, initiating a response within the cell.

Carrier Proteins

Proteins that facilitate the transport of substances across a cell membrane by changing shape or binding to the substance.

Marker Molecules

Substances used to identify or track cells, biological processes, or molecules in research and diagnostic applications.

Receptor Proteins

Proteins located on the surface of cells or within cells that bind to specific molecules, triggering a response within the cell.