Which of the Following Exchanges Qualifies for Nonrecognition Treatment as a §

question 33

Multiple Choice

Which of the following exchanges qualifies for nonrecognition treatment as a § 1031 like-kind exchange?

• A)Airplane used in a business for 1,000 shares of Blue, Inc., stock.
• B)Computer used in a business for wooden filing cabinets to be used in a business.
• C)Female cow for a male cow.
• D)Land in Spain for land in Florida.
• E)None of the above.

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Definitions:

Corporation Liability

Legal concept where a corporation, a legal entity recognized by law, can be held legally responsible for acts or omissions.

Revised Model Business Corporation Act

A set of model statutory provisions designed to guide states in the development of their corporate statutes, providing a standard for corporate governance and operations.

Daily Management

The ongoing operations and decision-making processes performed by an organization's management team on a day-to-day basis.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them ownership interests.