All of the Following Are True Except

question 46

Multiple Choice

All of the following are true except:

• A)A nonsimultaneous exchange may never qualify as a like-kind exchange.
• B)Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.
• C)A loss may be recognized on non-like-kind property (boot)if the taxpayer transfers the boot in an otherwise like-kind exchange.
• D)The holding period of like-kind property received includes the holding period of the property exchanged.

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Selling Price

The amount of money for which something is sold or offered for sale to a buyer.

Marked Down

A reduction in the price of goods to stimulate sales or clear out inventory.

Operating Expense

Operating expense includes all necessary expenditures that a business incurs as a result of performing its normal business operations, excluding the cost of goods sold.