(TCO 10) The tax basis of an asset includes: the fair market value of property received in a non-taxable exchange. the fair market value of services given in exchange. the amount of debt relief given in the exchange. All of the above (General Feedback: Chapter 7, lecture) Comments: Question 2. Question : (TCO 10) In general, an expenditure must be capitalized for tax purposes if: it creates or enhances an asset with a useful life of one taxable year. it results in no long-term benefit to the firm. tax treatment of the expenditure is certain. None of the above (General Feedback: Chapter 7, page 158) Comments: Question 3. Question : (TCO 10) On December 15, a calendar year taxpayer placed in service $100,000 of five-year recovery property. If this was in addition to another $250,000 of assets placed into service early in the year, it will be subject to: the mid-quarter convention. the mid-month convention. the half-year convention. no convention. (General Feedback: Chapter 7, page 168-169) Comments: Question 4. Question : (TCO 10) Bent Pretzel Inc. sold a building that it held for investment for several years. In this transaction, Bent Pretzel received land that it will use in its business. The FMV of the building is $80,000 and the value of the land is $80,000 too. The adjusted basis of the building is $55,000 and the land is $30,000. What is Bent Pretzel's recognized gain? $55,000 $25,000 $80,000 $0 (General Feedback: Chapter 9. Like-kind exchange; no boot.) Comments: Question 5. Question : (TCO 10) In a qualifying like-kind exchange, Van Halen exchanges musical equipment with an adjusted basis of $350,000 (fair market value of $300,000) for other musical equipment. What is his basis in the new equipment? $200,000 $225,000 $350,000 $230,000 (General Feedback: Chapter 9. The FMV of the property received transfer basis ($300,000) plus the loss not recognized ($50,000).)