Gain Realized on a Like-Kind Exchange Is Excluded from Income

question 2

Multiple Choice

Gain realized on a like-kind exchange is excluded from income in all of the following circumstances except:

• A)When a liability is assumed.
• B)When boot is received.
• C)When boot is given.
• D)Both when boot is received and when a liability is assumed.

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Definitions:

Book Value

The net value of a company's assets, found by deducting total liabilities and intangible assets from total assets.

Salvage Value

The foreseen remaining value of an asset at the culmination of its viable life.

Useful Life

The expected period over which a fixed asset is anticipated to be usable by an entity, after which it will no longer be efficient or effective.

Double-Declining-Balance

A method of accelerated depreciation that calculates depreciation expenses by doubling the straight-line rate.