Chapter 15 Quiz - Question 1 The nonrecognition of gains...

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Question 1 The nonrecognition of gains and losses under §1031 is mandatory for gains and elective for losses. Choose one answer. b. False Correct Question 2 Livestock of different sexes can qualify for like-kind exchange treatment if the livestock has been held for over one year. Choose one answer. b. False Correct Correct. Question 3 The surrender of depreciated boot (fair market value is less than adjusted basis) in a like- kind exchange can result in the recognition of loss. Choose one answer. a. True Correct Correct. Question 4 Jennifer owns land as an investor. She exchanges the land for a warehouse in which she will store the inventory of her business. The exchange does not qualify for like-kind exchange treatment. Choose one answer. b. False Correct Question 5 Nancy and Tonya exchanged assets. Nancy gave Tonya her personal residence with an adjusted basis of $280,000 and a fair market value of $560,000. The house has a mortgage of $200,000 which is assumed by Tonya. Tonya gave Nancy a yacht used in her business with an adjusted basis of $250,000 and a fair market value of $360,000. What is Tonya's realized and recognized gain? Choose one answer. c. $110,000 realized and $110,000 recognized gain. Correct Correct. Question 6 Brett owns investment land located in Tucson, Arizona. He exchanges it for other investment land. In which of the following locations may the other investment land be located and enable Brett to qualify for §1031 like-kind exchange treatment? Choose one answer. e. None of the above. Correct Correct. Question 7 Taxpayer exchanges a warehouse for a building she will use as an office building. The
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adjusted basis of the warehouse is $600,000 and the fair market value of the office building is $350,000. In addition, the taxpayer receives cash of $150,000. What is the recognized gain or loss and the basis of the office building? Choose one answer. a. $0 and $350,000. Incorrect b. $0 and $450,000. Correct Correct. Question 8 Latisha owns a warehouse with an adjusted basis of $112,000. She exchanges it for a strip mall building worth $150,000. Which of the following statements is correct? Choose one answer. d. Only b. and c. are correct. Question 1 If boot is received in a §1031 like-kind exchange that results in some of the realized gain being recognized, the holding period for both the like-kind property and the boot received begins on the date of the exchange. Choose one answer. b. False Correct Correct. Question 2 If there is realized gain on a like-kind exchange, both the receipt of boot and the giving of boot result in part or all of the realized gain being recognized. Choose one answer. b. False Correct Question 3 In a nontaxable exchange, recognition is postponed. In a tax-free transaction, nonrecognition is permanent. Choose one answer.
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Chapter 15 Quiz - Question 1 The nonrecognition of gains...

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