Which of the following qualifies as a like-kind exchange of property?
I.Inventory for inventory.
II.Office equipment for a delivery van.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following qualifies as a like-kind exchange of property?
I.Inventory for inventory.
II.Office equipment for a delivery van.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Like-kind exchange of property refers to exchanging the same type of property, such as real estate for real estate or vehicles for vehicles. Inventory for inventory is not a like-kind exchange if the type of inventory is not the same. Similarly, office equipment and a delivery van are not the same type of property, so exchanging them does not qualify as a like-kind exchange.

Which of the Following Qualifies as a Like-Kind Exchange of Property