Which of the Following Statements Regarding Involuntary Conversions Is Incorrect

question 54

Multiple Choice

Which of the following statements regarding involuntary conversions is incorrect?

• A)With some exceptions,the replacement property must be similar or related in service or use to the property converted.
• B)The functional-use test is more restrictive than the like-kind test.
• C)The taxpayer-use test applies to the involuntary conversion of rental property owned by an investor.
• D)Real property used in a trade or business that is condemned must be replaced with property which has the same functional use as the converted property.

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Definitions:

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales.

Leased Department

A section within a retail store that is rented to an outside party.

Omni-Channel Retailing

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience whether they're shopping online from a mobile device, a laptop, or in a brick-and-mortar store.

Direct Selling

Retailing in which an independent representative of a company conducts retail and sales-related activities away from a fixed retail location, most often at consumers’ homes or place of business. Also known as direct retailing.