gain on the exchange of a like-kind plant asset is not recorded, but results in a smaller basis in the new asset received.

Name: gain on the exchange of a like-kind plant asset is not recorded, but results in a smaller basis in the new asset received.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

In a like-kind exchange, the gain is not recognized for accounting purposes; instead, it is deferred and reduces the basis of the new asset, resulting in lower depreciation expense over the life of the new asset.

Gain on the Exchange of a Like-Kind Plant Asset Is