When the Cost of Replacement Property Is Less Than the Amount

question 83

True/False

When the cost of replacement property is less than the amount realized on an involuntary conversion,gain will be recognized.The recognized gain will be equal to the amount realized over the cost of the replacement property,but not more than the total realized gain.

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Definitions:

Deviations

Instances of departing from an established course or accepted standard.

Average Return

The sum of returns accrued over a period divided by the number of periods to assess investment performance.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an investment, market, or market sector changes.

Geometric Average Return

The average rate of return of a set of values calculated by multiplying the n values and taking the n-th root.