The Property to Be Received in a Like-Kind Exchange Must

question 58

Multiple Choice

The property to be received in a like-kind exchange must be identified within:

• A)45 days after the transfer of the property relinquished in the exchange.
• B)90 days after the transfer of the property relinquished in the exchange.
• C)180 days after the transfer of the property relinquished in the exchange.
• D)There is no time limit to identify the property to be received.

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Definitions:

Capital Lease

A capital lease is a lease agreement that is structured so that the lessee effectively becomes the owner of the asset for accounting purposes, usually for long-term assets.

Lease Liability

An obligation representing the present value of future lease payments a lessee is committed to make under a lease agreement.

Cost of Capital

The rate of return that a firm must earn on its project investments to maintain its market value and attract funds.