The Property to Be Received in a Like-Kind Exchange Must

question 7

Multiple Choice

The property to be received in a like-kind exchange must be identified within:

• A)180 days after the transfer of the property relinquished in the exchange.
• B)45 days after the transfer of the property relinquished in the exchange.
• C)90 days after the transfer of the property relinquished in the exchange.
• D)There is no time limit to identify the property to be received.

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Definitions:

Short-term Sources

refer to financial resources or loans that are expected to be repaid within a year.

Permanent Assets

Also known as fixed assets; these are long-term resources owned by a business, like property, plant, and equipment, expected to provide value for several years.

Machinery

Machines collectively, especially those used in production or some form of labor.

Acquisitions

The act of obtaining control of another company or its assets through purchase, which can facilitate growth and expand market share.