Ch 11 Quiz example #77795

An Asset's tax basis is usually less than its book adjusted basis.

Tax gain or loss realized is generally recognized for tax purposes.

Property held for investment and inventory are examples of capital assets

A parcel of land used in a trade or business is a capital asset

Section 1239 recharacterizes gain on the sale of depreciable property to related persons as ordinary income.

In a deferred like-kind exchange the like-kind property to be received must be identified within 60 days and acquired within 200 days fro the initial exchange.

An installment sale is any sale where at least a protion of the sales proceeds are recognized in a subsequent taxable year.

Fair market value of other property received is used in the calculation of the amount realized

Sale to a related party at a gain is a realized gain and a recognized gain.

Which of the following results in an ordinary gain or loss?

Which of the following is true regarding a section 1245 depreciation recapture?

Kim sold equipment that she uses in her business for 50K Kim bought it 2 years ago for 60 K and has claimed 30K of depreciation expense. What is the amount and character of Kimberly's gain or loss?