In the Current Year,Keyaki Construction Company Exchanged an Old Truck,which

question 108

Multiple Choice

In the current year,Keyaki Construction Company exchanged an old truck,which cost $53,000 and had accumulated depreciation of $16,000,for a new truck having a fair market value of $65,000.In connection with the exchange,Keyaki paid $28,000 in cash.What is the tax basis of the new truck?

• A)$37,000
• B)$54,000
• C)$65,000
• D)$69,000
• E)None of the above

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Definitions:

Meeting of Creditors

A gathering in bankruptcy proceedings where creditors can question the debtor about their finances and the bankruptcy petition.

Debtor's Assets

Property owned by an individual or entity that owes money to creditors, which can be used to pay off debts.

Presumption of Abuse

A legal assumption that an action is undertaken with the intention of exploiting or harming, especially in contexts like bankruptcy filings where managing debt responsibly is questioned.

Trustee

An individual or organization appointed to manage assets on behalf of others, often in cases of bankruptcy or for a trust.