5,

A deferred like-kind exchange does not help accomplish which of the following objectives?

Multiple Choice

a, To facilitate finding replacement property.

b, To help acquire the replacement property.

c, To reduce the possibility that the seller must receive cash (boot) that will taint the transaction.

d, To certify the taxpayer's Form 8824Like-kind exchanges.

e, All of the choices are correct.

16, Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Koch originally purchased Machine 1 for $75,000, and Machine 1's adjusted basis was $40,000 at the time of the exchange. Machine 2's seller purchased it for $65,000 and Machine 2's adjusted basis was $55,000 at the time of the exchange. What is Koch's adjusted basis in Machine 2 after the exchange?

Multiple Choice

a, $40,000.

b, $50,000.

c,$55,000.

d, $75,000.

e, None of the choices are correct.