Luce Company Exchanged the Copyright on a Software Application for a Copyright

Multiple Choice

Luce Company exchanged the copyright on a software application for a copyright on a different software application. Luce's gain on the exchange was nontaxable (because the copyrights were like-kind) but was included in financial statement income. Which of the following statements is false?

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