Itak Company transferred an old asset with a $44,300 adjusted tax basis in exchange for a new asset worth $48,000 and $3,000 cash.Which of the following statements is false?
A)If the exchange is taxable,Itak recognizes a $6,700 gain.
B)If the exchange is nontaxable,Itak recognizes a $3,000 gain.
C)If the exchange is nontaxable,Itak's tax basis in the new asset is $44,300.
D)None of the statements is false.

Question

Quizplus · Accepted Answer

The Answer of Itak Company transferred an old asset with a $44,300 adjusted tax basis in exchange for a new asset worth $48,000 and $3,000 cash.Which of the following statements is false?
A)If the exchange is taxable,Itak recognizes a $6,700 gain.
B)If the exchange is nontaxable,Itak recognizes a $3,000 gain.
C)If the exchange is nontaxable,Itak's tax basis in the new asset is $44,300.
D)None of the statements is false.

Itak Company Transferred an Old Asset with a $44,300 Adjusted