Luce Company Exchanged Investment Land for a Building to Be

Multiple Choice

Luce Company exchanged investment land for a building to be used in its business. Luce's gain on the exchange was nontaxable (because the assets were like-kind) but was included in financial statement income. Which of the following statements is false?

A) Luce's book basis in the building received is the building's cost (FMV) .
B) Luce's tax basis in the building received equals its tax basis in the land surrendered.
C) Luce's future depreciation deductions with respect to its tax basis in the building will be different from future depreciation expense for financial statement purposes.
D) None of these statements are false.