Vector Inc

question 99

True/False

Vector Inc.'s office building burns down on October 31,2014.Vector,a calendar year taxpayer,finally settles with the insurance company on February 3,2015.In order to defer the gain realized on the building,Vector must acquire another office building by February 3,2017.

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Definitions:

Journal Entry

A record in the accounting ledger that represents a transaction and its effect on accounts.

Fair Value

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Ordinary Repairs

Regular maintenance or repairs to keep property and equipment functioning efficiently without extending its life or increasing its value substantially.

Rental Property

Real estate property that is leased or rented out to tenants, generating income for the owner.