A) Which of the following statements about listed property is not true?

1. Cost recovery for a $60,000 luxury auto placed in service in 2019 and used 80% for business (electing out of bonus depreciation) is $9,600.

2. Straight line depreciation must be used in the transitional year (the year when the property is no longer used predominantly for business) and all subsequent years.

3. The taxpayer must report listed property recapture as ordinary income in the transitional year (the year when the property is no longer used predominantly for business).

4. None of the answers provided is correct.

5. Cost recovery for a $60,000 luxury auto placed in service in 2019 and used 40% for business (electing out of bonus depreciation) is $2,400.

B) Which of the following statements is not true?

1. The cost of goodwill is determined in an acquisition using the residual method.

2. Research and experimental expenditures can be expensed in the year paid or incurred.

3. If software is purchased in connection with the acquisition of a number of assets of an existing trade or business, it will be depreciated over 36 months.

4. None of the answers provided are correct.

5. Research and experimental expenditures can be deferred and amortized over a period of 60 months or more beginning with the month in which benefits are first realized.

C) Which of the following statements is not true?

1. The holding period of the like-kind property given up carries over to the holding period of the like-kind property received.

2. The functional use test is the most liberal test to determine replacement property in an involuntary conversion.

3. An exchange of a business building for investment raw land is considered to be a like-kind exchange.

4. None of the answers provided is correct.

5. If each party assumes a liability of the other party, only the net liability given or received is treated as boot.