Doppia Company Transferred an Old Asset with a $68,750 Adjusted

question 48

Multiple Choice

Doppia Company transferred an old asset with a $68,750 adjusted tax basis in exchange for a new asset worth $90,000 and $10,000 cash.Which of the following statements is false?

• A)The old asset's FMV is $100,000.
• B)If the exchange is nontaxable,Doppia's recognized gain is $10,000.
• C)If the exchange is nontaxable,Doppia's tax basis in the new asset is $78,750.
• D)None of the statements is false.