1. The rationale behind IRS allowance of depreciation deductions is
1) Recoupment of capital in wasting assests.
2) To provide tax relief for real estate investment.
3) To promote more affordable real estate ownership.
4) All of the above.
2. The tax basis of property acquired in a like-kind exchange:
1) is the same as the property given up in the exchange.
2) is the same for the new owner as it was for the old owner.
3) is the market value of the acquired property, less any unrecognized gain, or plus any unrecognized loss.
4) none of the above.