Alex Owns an Office Building Which the State Condemns on January

question 94

Multiple Choice

Alex owns an office building which the state condemns on January 15,2014.Alex receives the condemnation award on April 1,2014. In order to qualify for nonrecognition of gain on this involuntary conversion,what is the last date for Alex to acquire qualified replacement property?

• A)January 15,2016
• B)January 15,2017
• C)December 31,2016
• D)December 31,2017

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Definitions:

Journal Entries

Records of financial transactions in the accounting system, indicating the accounts affected and the debit and credit amounts.

Indirect Materials

Materials used in the production process that cannot be easily traced to specific products, such as lubricants and cleaning supplies.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Manufacturing Overhead

Includes all manufacturing costs other than direct materials and direct labor, encompassing expenses such as depreciation, electricity, and maintenance of factory facilities.