Terry Exchanges Real Estate (Acquired on August 25,2008)held for Investment

True/False

Terry exchanges real estate (acquired on August 25,2008)held for investment for other real estate to be held for investment on September 1,2014.None of the realized gain of $10,000 is recognized,and Terry's adjusted basis for the new real estate is a carryover basis of $80,000.Consequently,Terry's holding period for the new real estate begins on August 25,2008.