Nagin Inc. transferred an old asset in exchange for a new asset worth $84,000 and $6,000 cash. The old asset and new asset were like-kind properties. Which of the following statements is true?
A. If Nagin's basis in the old asset was $85,000, Nagin must recognize a $6,000 gain.
B. If Nagin's basis in the old asset was $95,000, Nagin can recognize a $5,000 loss.
C. If Nagin's basis in the old asset was $79,200, Nagin must recognize a $6,000 gain.
D. None of the above is true.
Answer: C
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