G&G Inc.transferred an old asset with a $110,300 adjusted tax basis plus $20,000 cash in exchange for a new asset worth $150,000.Which of the following statements is false?
A)The old asset's FMV is $150,000.
B)If the exchange is nontaxable,G&G's recognized gain is -0-.
C)If the exchange is nontaxable,G&G's tax basis in the new asset is $130,300.
D)None of the statements is false.

Question

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The Answer of G&G Inc.transferred an old asset with a $110,300 adjusted tax basis plus $20,000 cash in exchange for a new asset worth $150,000.Which of the following statements is false?
A)The old asset's FMV is $150,000.
B)If the exchange is nontaxable,G&G's recognized gain is -0-.
C)If the exchange is nontaxable,G&G's tax basis in the new asset is $130,300.
D)None of the statements is false.

G&G IncTransferred an Old Asset with a $110,300 Adjusted Tax Basis