Answer:
The answer is: B) $24,000
Explanation:
This type of exchange is classified as a like-kind exchange (1031 exchange); it is a transaction that allows a company to dispose an asset and acquire another replacement asset without generating a tax liability from the sale of the replaced asset.
$40,000 (replacement asset) + $4,000 (cash paid) - $20,000 (replaced asset) = $24,000
Its has to be B, it gotta be B
Answer:
b. a proprietorship
Explanation:
A proprietorship -
It refers to the most simplest business form , where one can start or operate an business , is referred to as a proprietorship .
A sole proprietorship refers to the person , who can operate a business , and is responsible for any type of loss or debt , is referred to as a sole proprietorship .
Hence , from the given scenario of the question,
The correct option is b. a proprietorship .
