Tauber Inc

Multiple Choice

Tauber Inc. and J&I Company exchanged like-kind assets. Tauber's asset had a $17,500 FMV and $3,000 adjusted tax basis, and J&I's asset had a $19,000 FMV and a $9,000 adjusted tax basis. Tauber paid $1,500 cash to J&I as part of the exchange. Which of the following statements is false?

A) Tauber's realized gain is $14,500 and recognized gain is -0-.
B) J&I's realized gain is $10,000 and recognized gain is -0-.
C) Tauber's basis in its newly acquired asset is $4,500.
D) J&I's basis in its newly acquired asset is $9,000.