In Determining the Basis of Like-Kind Property Received, Postponed Losses

Multiple Choice

In determining the basis of like-kind property received, postponed losses are:

A) Added to the basis of the old property.
B) Subtracted from the basis of the old property.
C) Added to the fair market value of the like-kind property received.
D) Subtracted from the fair market value of the like-kind property received.
E) None of the above.