Which One of the Following Qualifies as a Like-Kind Exchange

question 19

Multiple Choice

Which one of the following qualifies as a like-kind exchange?

• A)A chicken held by a farmer exchanged for medical services.
• B)A home owned and lived in by a taxpayer exchanged for a new personal residence.
• C)IBM stock exchanged for Exxon stock.
• D)A Dodge Ram pickup truck used in business traded in for a new Ford F-250 pickup truck also intended for business use.
• E)None of the above are like-kind property.

---

Definitions:

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its objectives.

Gross Profit

Gross Profit is the revenue from sales minus the cost of goods sold, indicating the profitability of a company before accounting for operating expenses, interest, and taxes.

Average Cost Method

A technique for inventory valuation and cost determination that calculates inventory and cost of goods sold based on the average price of all units available during the period.

Average Cost Per Unit

The total cost of production divided by the total number of units produced, providing a cost measure per single unit.