Teco Inc. and MW Company exchanged like-kind assets. Teco's asset had an $80,000 FMV and $53,900 adjusted tax basis, and MW's asset had an $87,500 FMV and a $28,100 adjusted tax basis. Teco paid $7,500 cash to MW as part of the exchange. Which of the following statements is false?
A. MW's realized gain is $59,400 and recognized gain is $7,500.
B. Teco's basis in its newly acquired asset is $61,400.
C. Teco's realized gain is $26,100 and recognized gain is -0-.
D. MW's basis in its newly acquired asset is $35,600.
Answer: D
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