1 Reiter Incorporated exchanged an old forklift for new office furniture. This exchange qualifies as a nontaxable like-kind exchange. True or False True False 3 Gain realized on a property exchange that is not recognized is deferred. True or False True False Toffel Incorporated exchanged investment land subject to a $240,000 mortgage for unencumbered farmland. If Toffel realized a $168,000 gain on the exchange, it must recognize the entire gain. True or False True False