A Corporation Owns Many Acres of Timber,which It Acquired Three

question 4

Multiple Choice

A corporation owns many acres of timber,which it acquired three years ago,and which has a $150,000 basis for depletion.The timber is cut during the current year for use in the corporation's business.The FMV of the timber on the first day of the current year is $280,000.If the corporation makes the appropriate election,the tax result is

• A)recognition of a Sec.1231 gain of $130,000.
• B)no recognition of gain or loss since the timber is used in the business.
• C)recognition of a gain at the time of sale if the timber is later sold with the gain equal to the sales price less the basis in the timber.
• D)recognition of a gain if the timber is later sold with the gain equal to the sales price less $280,000 (FMV on the first day of the year of the cutting).

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Definitions:

Ethnographic Research

A qualitative research method focused on studying cultures and communities through direct observation, participation, and immersion.

Shared Values

Common beliefs, principles, or standards held by a group, organization, or society that guide behavior and decision-making.

Detailed Stories

Narratives or accounts that provide an in-depth and comprehensive description of events or experiences.

Independent Variable

The variable that is manipulated or changed in an experiment to see if it has an effect on another variable.