Which of the Following Is True of a Like-Kind Exchange

question 11

Multiple Choice

Which of the following is true of a like-kind exchange:

• A)There must be no cash exchanged to qualify.
• B)The properties exchanged cannot be personal residences.
• C)Office furniture can be exchanged for computers.
• D)A new holding period for capital gains treatment starts on the day the exchange is completed.

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Definitions:

March Put

A put option contract with a expiration date in March, allowing the holder to sell an asset at a pre-specified price.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, commodity, or other asset at a specified price within a specified time.

Exercise Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying security or commodity.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price before or on a specified date.