Which One of the Following Is Not True Regarding a Like-Kind

question 21

Multiple Choice

Which one of the following is not true regarding a like-kind exchange?

• A)Loss on like-kind property is not recognized.
• B)Gains on boot given are deferred.
• C)Losses on boot given are not recognized.
• D)Securities can be like-kind with any other securities.
• E)All of thesE.Losses on boot,but not like-kind property,given are recognized currently.

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Definitions:

Useful Life

The estimated period that an asset is expected to be usable for the purpose it was acquired, affecting its depreciation or amortization.

Straight-Line Method

A method of calculating depreciation of an asset where its cost is evenly spread over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life or lease term.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life.