The General Rule Regarding the Exchanged Basis in the New

question 27

Multiple Choice

The general rule regarding the exchanged basis in the new property received in a like-kind exchange is:

• A) The basis is equal to the fair market value of the new property.
• B) The basis is equal to the fair market value of the old property.
• C) The basis is equal to the adjusted basis of the old property.
• D)The basis is equal to the cost basis of the old property.
• E)All of these

---

Definitions:

Two-Factor Theory

A psychological theory proposing that emotional experience results from a combination of physiological arousal and a cognitive label for that arousal.

Cognitive Appraisal

The process of interpreting and evaluating an event or situation which significantly influences one's emotional and psychological response.

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for fight or flight responses by increasing heart rate, blood flow, and adrenaline release.