1. When a taxpayer sells or disposes of a fully depreciated asset used in his trade or business, he must recognize a loss on the disposition.

Select one:

True

False

2. A tract of land rented to a farmer for agriculture purposes is considered Section 1231 property to its owner.

Select one:

True

False

3. In a like-kind exchange which results in a realized loss, a taxpayer must recognize a gain equal to the amount of non-like-kind property (boot) received in the exchange.

Select one:

True

False

4. If insurance proceeds exceed the taxpayer's basis in property destroyed by fire, the taxpayer may be required to recognize a gain.

Select one:

True

False