All of the Following Transactions Are Exempt from Rules Regarding

question 76

Multiple Choice

All of the following transactions are exempt from rules regarding imputed interest with the exception of

• A)taxpayer purchases newly issued bond for $700 (face value of $1,000).
• B)taxpayer sells land for $135,000 with payment due in 5 years and no stated interest.
• C)taxpayer sells his home gym equipment for $2,800 with payment due in one year and no stated interest.
• D)taxpayer purchases a sailboat costing $2,500 for weekend boating trips; the full price payable in five months and no stated interest.

---

Definitions:

Major Organic

Refers to the most significant or prevalent organic compound produced in a given chemical reaction.

Reaction

A process in which substances interact, typically involving bond formation or breakage, resulting in the transformation into different substances.

Ethylene Oxide

A highly reactive, flammable gas used primarily to produce ethylene glycol and as a sterilant for medical equipment and supplies.

N-pentyllithium

A lithium organic compound used as a strong base and nucleophile in organic synthesis, with a pentyl group attached to lithium.