Eliot Inc Transferred an Old Asset with a $53,100 Adjusted Tax

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 these statements is false.

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Definitions:

Smooth Running

The operation of a system, process, or machine in a manner that is efficient, without interruptions, and effectively managed.

Medical Office

A facility where medical professionals provide outpatient services, including diagnosis, treatment, and patient care management.

Indefinitely

A term used to describe an action or event that has no specified end time.

Administrative Supplies

Administrative supplies include the essential office items and materials used for administrative tasks, such as filing, scheduling, and documentation.