If Sec1231 Applies to the Sale or Exchange of an Unharvested

question 80

Multiple Choice

If Sec.1231 applies to the sale or exchange of an unharvested crop sold with land,the costs of producing the crop are

• A)capitalized.
• B)deducted as an expense of operations when incurred and also deducted from the sales price at the time of the sale.
• C)deducted when incurred if the land is sold but capitalized if the land is exchanged.
• D)deducted as an expense of operations when incurred.

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Definitions:

Isotope

Variants of a particular chemical element which differ in neutron number but have the same number of protons.

Iron-56

An isotope of iron with a mass number of 56, known for its stability and abundant presence in the universe.

Neutrons

Subatomic particles found in the nucleus of an atom, with no electrical charge and a mass slightly larger than that of protons.

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number, but share the same number of protons.