Which of the Following Exchanges of Property Are Like-Kind Exchanges

question 3

Multiple Choice

Which of the following exchanges of property are like-kind exchanges?
I.Convenience store owner trades several cases of potato chips for a cash register.
II.A completely rented apartment building traded for a parts supply warehouse to use in business.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Negotiable Instrument

A financial document providing assurance for the payment of a given amount of money, either to be paid on demand or at an agreed time, with the document containing the name of the payee.

Writing Requirement

A legal condition under certain laws requiring certain contracts to be in writing to be enforceable.

Order Instrument

A financial document that is payable to a specific person or entity, as named or endorsed on the instrument.

Specific Payee

A person or entity named in a negotiable instrument to whom or to whose order the money is directed to be paid.