_____ 2A Gain Must Be Recognized Unless Some Tax Provision Allows

question 41

True/False

_____ 2.A gain must be recognized unless some tax provision allows nonrecognition or deferral.

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Definitions:

Fair Market Value

The amount for which a property would be sold in an open market transaction, involving a ready seller and a ready buyer, both possessing adequate awareness of the pertinent details.

Recovery

The action of regaining possession or obtaining compensation for a loss.

Recognizance

A legal obligation, acknowledged before a court, where an individual promises to adhere to certain conditions without the need for posting bail.

Acknowledges

The act of recognizing or admitting the existence or truth of something, often formally in writing.