Berly Company Transferred an Old Asset with a $12,300 Adjusted

question 30

Multiple Choice

Berly Company transferred an old asset with a $12,300 adjusted tax basis in exchange for a new asset worth $20,000. Which of the following statements is false?

• A) The old asset's FMV is $20,000.
• B) If the exchange is nontaxable, Berly's tax basis in the new asset is $12,300.
• C) If the exchange is taxable, Berly's recognized gain is $7,700.
• D) None of these statements is false.