Answered

When boot is involved in an exchange having commercial substance:_______

a. only losses should be recognized.
b. gains or losses are recognized in their entirety.
c. a gain or loss is computed by comparing the fair value of the asset received with the fair value of the asset given up.
d. only gains should be recognized.



Answer :

Answer: gains or losses are recognized in their entirety.

Explanation:

When boot is involved in an exchange having commercial substance, we should note that boot in this scenario refers to cash.

We should note that when cash is involved in an exchange that has commercial substance, it's either a gain or loss is made.

Therefore, the correct option is B.