51 rosa exchanges business equipment with a 60 000 adjusted basis for a like kind pi 4313171

51 rosa exchanges business equipment with a 60 000 adjusted basis for a like kind pi 4313171

51) Rosa exchanges business equipment with a $60,000 adjusted basis for a like-kind piece of equipment with a $100,000 FMV and $20,000 of marketable securities. What is Rosa's basis for the new equipment?

A) $60,000

B) $80,000

C) $100,000

D) $120,000

52) If there is a like-kind exchange of property between related parties, how long do they have to wait to dispose of the property received in order to avoid having to recognize any gain on the exchange?

A) 6 months

B) 1 year

C) 2 years

D) no waiting period

53) Rolf exchanges an office building worth $150,000 for investment land worth $175,000.  He also provided stock worth $25,000.  Rolf's adjusted basis in the building and stock is $130,000 and $11,000, respectively.  How much gain will Rolf recognize on the exchange?

A) $-0-

B) $14,000

C) $20,000

D) $34,000

54) Yael exchanges an office building worth $150,000 for investment land worth $175,000.  He also provided

stock worth $25,000.  Yael's adjusted basis in the building and stock is $180,000 and $11,000, respectively. How much gain or loss will Yael recognize on the exchange?

A) $-0-

B) ($30,000)

C) ($16,000)

D) $14,000

55) Which of the following statements is not true with regard to like-kind exchanges?

A) Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.

B) The holding period of like-kind property received includes the holding period of the property exchanged.

C) A loss is always recognized if the taxpayer transfers non-like-kind personal use property in an otherwise like-kind exchange.

D) The basis of property received in an exchange is equal to the basis of the property exchanged less the boot received plus the gain recognized and less any loss recognized.

56) All of the following are true except:

A) A nonsimultaneous exchange may never qualify as a like-kind exchange.

B) Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.

C) A loss may be recognized on non-like-kind property (boot) if the taxpayer transfers the boot in an otherwise like-kind exchange. 

D) The holding period of like-kind property received includes the holding period of the property exchanged.

57) Cassie owns a Rembrandt painting she acquired on June 1, 2008 as an investment. She exchanges the painting on September 5, 2013, for a Picasso sculpture and marketable securities to be held as an investment. On what date does the sculpture's holding period begin?

A) June 1, 2008

B) June 2, 2008

C) September 5, 2013

D) September 6, 2013

58) Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie's adjusted basis in the building was $175,000, and its FMV was $210,000. Stephanie filed an insurance claim and was reimbursed $200,000. In that same year, Stephanie invested $180,000 of the insurance proceeds in another business building. If the proper election is made, Stephanie will recognize gain of

A) $ -0-.

B) $15,000.

C) $20,000.

D) $25,000.

59) Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie's adjusted basis in the building was $175,000, and its FMV was $210,000. Stephanie filed an insurance claim and was reimbursed $200,000. In that same year, Stephanie invested $180,000 of the insurance proceeds in another business building. Assuming the proper election is made to defer gain, Stephanie's basis in the new building will be

A) $175,000.

B) $180,000.

C) $200,000.

D) $210,000.

60) Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the building was $210,000, and its FMV was $330,000. Ron filed an insurance claim and was reimbursed $300,000. In that same year, Ron invested $240,000 of the insurance proceeds in another business building.  Ron will recognize gain of

A) $-0-.

B) $30,000.

C) $60,000.

D) $90,000.

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