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.