The General Rule Regarding the Exchanged Basis in a Like-Kind

question 49

Multiple Choice

The general rule regarding the exchanged basis 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.The general rule is that the property receives a carryover basis from the old property.

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Definitions:

Hypersecretion

Abnormally increased output of a secreted material. Compare with hyposecretion.

Growth Hormone

A biochemical substance that promotes growth, cellular reproduction, and the renewal of cells in humans and animals.

Acromegaly

A condition characterized by overgrowth of the extremities of the skeleton, fingers, toes, jaws, and nose. It may be produced by excessive secretion of growth hormone by the anterior pituitary gland.

Gigantism

Abnormally tall growth caused when anterior pituitary secretes excessive amounts of human growth hormone during childhood