Kimbo Inc. exchanged an old asset ($180,000 FMV and $145,000 adjusted basis) plus $10,000 cash for a new asset with a $190,000 FMV. What is Kimbo's basis in the new asset if the transaction qualifies as a like-kind exchange?

A.

$135,000

B.

$145,000

C.

$190,000

D.

$155,000

Which of the following statements about nontaxable exchanges is true?

Select one:

A.

Any gain realized on the exchange is not included in financial statement income.

B.

The parties to the exchange both realize gain on the exchange.

C.

The parties to the exchange agree that the properties exchanged are of equal value.

D.

No cash can change hands in a nontaxable exchange.