Final answer:
A like-kind exchange refers to a transaction where an asset is exchanged for a similar asset without incurring a tax liability. Improved real estate, airplane, and apartment building can be exchanged for similar assets in a like-kind exchange. However, a printer cannot be exchanged for a computer in a like-kind exchange.
Step-by-step explanation:
A like-kind exchange refers to a transaction where an asset is exchanged for a similar asset without incurring a tax liability. In this case, improved real estate held for investment being exchanged for unimproved real estate held for investment, an airplane used in trade or business for a general purpose truck used in trade or business, and an apartment building held for investment for farmland used in a trade or business all qualify as like-kind exchanges.
However, a printer used in trade or business being exchanged for a computer used in trade or business does not qualify as a like-kind exchange because they are not of the same nature or character.