A Owns a Ranch in Wyoming,which B Offers to Purchase

question 74

Multiple Choice

A owns a ranch in Wyoming,which B offers to purchase.A is not willing to sell the ranch but is willing to exchange the ranch for an apartment complex in Louisiana.The complex is available for sale.B purchases the apartment complex in Louisiana from C and transfers it to A in exchange for A's ranch.The ranch and the complex each have a $1,000,000 fair market value.Which of the following is true?

• A)The transaction qualifies as a like-kind exchange for B but not for A.
• B)The transaction qualifies as a like-kind exchange for both B and A.
• C)The transaction qualifies as a like-kind exchange for A but not for B.
• D)The transaction does not qualify as a like-kind exchange for either B or A.

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Definitions:

Quantities

The amounts or levels of a good or service available or required in various contexts, such as in markets or in production processes.

Prices

Amounts of money required to purchase goods or services, acting as an indicator of the value placed on those goods or services by the market.

Department of Labor

A federal department responsible for promoting the welfare of job seekers, wage earners, and retirees in the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and healthcare benefits, and ensuring workplace safety.

Workers

Individuals engaged in some form of employment, contributing labor for the production of goods and services.