Which of the Following Is True of a Like-Kind Exchange

question 112

Multiple Choice

Which of the following is true of a like-kind exchange:

• A)There must be no cash exchanged to qualify.
• B)The properties exchanged cannot be personal property.
• C)Office furniture can be exchanged for computers.
• D)A new holding period for capital gains treatment starts on the day the exchange is completed.

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Definitions:

Geometric Average Return

The average rate of return of a set of values calculated by multiplying the n values and taking the n-th root.

Multi-year Period

A timeframe that extends beyond a single year, often used in financial planning, projections, and analysis.

Compound Return

The rate of return on an investment that includes reinvesting the gains to generate additional earnings over time.

Semi-Strong Form Efficient

This term describes a market hypothesis where all public information is already reflected in stock prices, implying that analyzing financial statements or recent news would not give an investor any advantage.