In Its Inventory,an Art Dealer Holds a Picasso Painting for Sale

question 16

True/False

In its inventory,an art dealer holds a Picasso painting for sale which has appreciated since its acquisition.The art dealer exchanges the Picasso for a Van Gogh painting of similar value.The art dealer will not recognize the gain on the Picasso because of the like-kind exchange provisions.

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Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving and creativity.

Genetic Problems

Disorders or diseases that are caused by abnormalities in an individual's DNA or chromosomes.

Brain Damage

Injury to the brain that impairs its functions, which can result from accidents, diseases, lack of oxygen, or neurological disorders.

Convergent Thinking

Thinking that produces one correct answer; characteristic of the kind of thinking required on conventional intelligence tests.