Question

The basis of property acquired in a bargain purchase is its cost.
a. True
b. False

Answer 1

The basis of property acquired in a bargain purchase is its cost.

Step-by-step explanation:

The correct answer is True.

The basis of property acquired in a bargain purchase is its cost. This means that when you acquire property through a bargain purchase, the basis or value of the property is the amount you paid for it. For example, if you buy a car for $5,000 in a bargain purchase, the basis of the car is $5,000.