Which of the Following Statements Is Correct with Respect to Qualified

Multiple Choice

Which of the following statements is correct with respect to qualified replacement property in a § 1033 involuntary conversion?

A) If the functional use test applies, a warehouse used to store inventory can be replaced with a smaller building to be used to sell inventory.
B) If the taxpayer use test applies, an office building rented to tenants can be replaced with an office building to be used in the taxpayer's business.
C) If the like-kind exchange test applies, a building used by the taxpayer for manufacturing can be replaced with an office building to be used in the taxpayer's business.
D) Only b. and c.
E) a., b., and c.