Which of the Following Qualify as a Like-Kind Exchange

question 79

Multiple Choice

Which of the following qualify as a like-kind exchange?
-Office copier for an office fax machine.

• A)qualifies as a like-kind exchange
• B)does not qualify as a like-kind exchange

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, also known as shareholders' equity.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Dividends Payable

Dividends payable are a liability on a company's balance sheet representing the amount of dividends that the company has declared but has not yet paid out to its shareholders.