Identify Which of the Following Is False

question 11

Multiple Choice

Identify which of the following is false.

• A)Corporations that sell real property at a gain must report an additional 20% of the entire gain as ordinary income.
• B)Corporations selling real property that previously had been depreciated using an accelerated method are subject to Sec. 291.
• C)Section 291 reduces the amount of net Sec. 1231 gains that can be offset by corporate capital losses.
• D)Section 291 recapture applies to Sec. 1250 property.

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Definitions:

State of Title Certificate

A document issued by a governmental land registration office showing the current status of legal ownership, and any encumbrances, liens, or mortgages on a piece of property.

Federal Government

The national government of a federated state, which shares sovereignty with its states or provinces.

Land Title Office

A government office that records the ownership and details of land and property.

Builders' Lien Act

Legislation that allows contractors and suppliers to place a lien on a property they have worked on or supplied materials for, to secure payment.