1. Net Book Value of a property received in a property transaction is the price determined by a willing buyer and a willing seller in a transaction event.

   True

   False

2. Nonrecognition of gain can be either mandatory or elective depending on whether the conversion is direct (into replacement property) or indirect (into money).

   True

   False

3. Taxpayers do not taxable income until there has been a recognized event.

   True

   False

4. Similar to gifts, Congressional intent is to exclude inheritences from taxable income.

   True

   False

5. If a property's fair market value on the gift date is lower than the donor's basis in the property, then the donee will have a carryover basis for determining their future gain or loss.

   True

   False

6. The basis for determining gain or loss on business assets converted to personal use assets is the lower of:

   	A.	The property's adjusted basis
   	B.	The property's fair market value on the date of conversion
   	C.	Not a recognized taxable event
   	D.	A and B only