On August 10,2010,Black,Inc

question 132

Multiple Choice

On August 10,2010,Black,Inc.acquired an office building as a result of a like-kind exchange.Black had given up a factory building that it had owned for 18 months as part of the like-kind exchange.Which of the statements below is correct?

• A)The holding period of the office building does not include the holding period of the factory building.
• B)The holding period of the factory building starts on August 11,2010.
• C)The holding period of the factory building starts on August 10,2010.
• D)The holding period of the office building includes the holding period of the factory building.
• E)None of the above.

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Definitions:

Fairness

The quality of treating others equitably, without favoritism or discrimination, often applied in legal, social, and economic contexts.

Equity

The ownership interest held by shareholders in a corporation, represented by their shares of stock.

Proportional

A relationship between two quantities where they increase or decrease at the same rate.

Tax Collection

The process performed by governments or authorized agencies to collect taxes from individuals, corporations, and other entities to fund public expenditures.