Identify Which of the Following Statements Is True

question 82

Multiple Choice

Identify which of the following statements is true.

• A)The transferor must recapture depreciation when exchanging Sec. 1245 property in all transactions coming under Sec. 351.
• B)A corporation receiving property in a Sec. 351 exchange can select any MACRS depreciation method for the asset.
• C)When depreciable property is transferred to a corporation in a Sec. 351 exchange in which no gain is recognized, the corporation must continue to use the transferor's depreciation method and recovery period for the property.
• D)All of the above are false.

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Definitions:

Future Operations

Planning and actions taken regarding a company's or organization's activities, strategies, and resources intended for the foreseeable future.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity and overall financial health.

Bid Prices

The highest price that a buyer is willing to pay for a security or commodity.

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.