The Taxpayer-Use Test for Qualifying Replacement Property

question 38

Multiple Choice

The taxpayer-use test for qualifying replacement property

• A)applies only to personalty
• B)requires replacement property used by the taxpayer to be used in the same business as the converted property
• C)only requires leased realty to be replaced with other leased realty
• D)Is more restrictive than the functional-use test

---

Definitions:

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.

Pollution

The addition of pollutants to the natural surroundings, leading to harmful alterations.

Environmental Standard

Regulations and criteria set by authorities aimed at minimizing the environmental impact of various activities, such as emissions levels and waste management protocols.

Quantity of Pollution

The measurable amount of pollutants or contaminants released into the environment, often subject to regulatory limits.