Which of the following statements is false?

A. Gains and losses on nontaxable exchanges under IRC1031 are deferred because the tax law recognizes that the exchange results in a mere change in form but not the substance of the taxpayer's economic position.

B. The provisions of IRC1031 are NOT elective; the non-recognition of BOTH gains AND losses is mandatory in a like-kind exchange.

C. To qualify as a like-kind exchange, the properties exchanged must be either business or investment property.

D. Thebasis of boot property received in a like-kind exchange is its fair market value on the date of the exchange and NOT carryover basis of the property given up in the exchange.

E. ALLof the above statements are true.