Which of the Following Statements About Nontaxable Exchanges Is True

Multiple Choice

Which of the following statements about nontaxable exchanges is true?

A) The parties to the exchange agree that the properties exchanged are of equal value.
B) The parties to the exchange both realize gain on the exchange.
C) No cash can change hands in a nontaxable exchange.
D) Any gain realized on the exchange is not included in financial statement income.