Which of the Following Is True of a Like-Kind Exchange

question 11

Multiple Choice

Which of the following is true of a like-kind exchange:

• A)There must be no cash exchanged to qualify.
• B)The properties exchanged cannot be personal residences.
• C)Office furniture can be exchanged for computers.
• D)A new holding period for capital gains treatment starts on the day the exchange is completed.

---

Definitions:

Formal Operations

refers to the final stage in Piaget's cognitive development theory, characterized by the ability to think abstractly and logically.

Sensory-Motor

Pertaining to the neural processes that integrate sensory input with motor output.

Preoperational

The stage of cognitive development in Piaget's theory, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.

Accommodation

The process by which the eye's lens changes shape to focus on near or distant objects, or in psychology, altering one's beliefs to make them compatible with reality.