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.

---

Definitions:

Roosevelt Administration

The period of U.S. history during Franklin D. Roosevelt's presidency, known for significant economic reforms known as the New Deal.

Federal Government Agencies

Organizations established by the federal government to implement certain policies, regulate activities, and provide specific services.

Mortgages

Loans secured by real property used by individuals and businesses to purchase homes or other real estate without paying the entire purchase price upfront.

Civil War

A Civil War is an intense conflict within a country fought by factions or communities seeking to take control of the nation or to change government policies.