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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