Berly Company transferred an old asset with a $12,300 adjusted tax basis in exchange for a new asset worth $20,000. Which of the following statements is false?

Question

Quizplus · Accepted Answer

All statements are true: A) The FMV of the old asset is equal to the FMV of the new asset in a nontaxable exchange. B) In a nontaxable exchange, the basis of the new asset is the same as the old asset's adjusted basis. C) In a taxable exchange, the recognized gain is the difference between the FMV of the new asset and the adjusted basis of the old asset.

Berly Company Transferred an Old Asset with a $12,300 Adjusted