Which of the following statements are true?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 4BD
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LiO Company transferred an old asset with a $13,600 adjusted tax basis in exchange for a new asset worth $11,000 and $1,500 cash. Which of the following statements are true?

a) If the exchange is taxable, LiO recognizes an $1,100 loss.

b) If the exchange is nontaxable, LiO recognizes no loss.

c) If the exchange is nontaxable, LiO’s tax basis in the new asset is $12,100

d) If the exchange is nontaxable, LiO recognizes a $1,500 Loss

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