Pierce Exchanges an Asset (Adjusted Basis of $14,000; Fair Market

question 177

True/False

Pierce exchanges an asset (adjusted basis of $14,000; fair market value of $18,000) for another asset (fair market value of $15,000).In addition, he receives cash of $3,000.If the exchange qualifies as a like-kind exchange, his recognized gain is $3,000 and his adjusted basis for the property received is $17,000 ($14,000 + $3,000 recognized gain).

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Definitions:

Shifting Emphasis

The act of changing the focus or importance from one idea or part of a message to another to adjust the perception or impact of the communication.

Informative Message

A communication designed to convey facts and information without the intention of influencing opinions or decisions.

Good News

Information or announcements that are positive, uplifting, or beneficial to the receiver.

Direct Message

A private form of communication between social media users, as opposed to publicly viewable posts or comments.