(A) Which one of the following statements is true?

a. Property received as a gift and then sold by the donee for an amount different from basis

might result in neither recognized gain nor recognized loss.

b. The holding period for property acquired by gift always begins on the date the donor

acquired the property.

c. The basis of property received by inheritance is usually a carryover basis.

d. A loss from the sale of a personal use asset that would be disallowed can be recognized if

the taxpayer converts the asset to business use prior to its sale.

(B) Which one of the following statements is true?

a. Under no circumstances is a loss ever recognized in a Section 1031 transaction.

b. If appreciated property is given as boot in a Section 1031 transaction, gain is recognized to

the extent of the appreciation on the boot regardless of the amount of the realized gain on

the exchange.

c. The basis of boot received in a like-kind exchange is its fair market value minus any

postponed gain or plus any postponed loss.

d. In a Section 1031 transaction, when the other party assumes the taxpayers mortgage,

the taxpayer has given boot.