Twining Corporation Has Some Land It Wants to Trade for a Building

question 52

Multiple Choice

Twining Corporation has some land it wants to trade for a building owned by Clopp Corporation.Clopp does not want to exchange the building because it wants to recognize its loss on the building.Twining, however, does not want to recognize its gain.What alternative(s) does Twining have that will allow it to avoid recognizing gain?

• A)Twining can sell its land to a third party and take the money and purchase the building.
• B)Twining can have a third party purchase the building and have the third party trade for the land.
• C)Twining can complete a nonsimulataneous exchange within one year of identifying the desired property.
• D)All of the above are acceptable alternatives.

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Definitions:

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen.

Defective Items

Products that fail to meet quality standards or specifications.

Estimate

To determine an approximate calculation or judgment of a numerical value.

Percentage

A number or ratio expressed as a fraction of 100, used to specify a portion of a whole.