A Taxpayer Has a Gain on Sec

question 53

True/False

A taxpayer has a gain on Sec.1245 property.None of the gain will be treated as Sec.1231 gain unless the sale price exceeds the original cost.

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Definitions:

Accumulated Benefit Obligation

An estimate of the total amount of an employer's obligation for pension benefits earned by employees to date, not based on future salary increases.

Plan Assets

Assets specifically identified to fund the obligations of a pension or other employee benefit plan.

Pension Funding

The financial contributions made by a company to a defined benefit pension plan to meet future pension obligations to retirees.

U.S. Income Tax Code

The body of laws and regulations that govern how individuals, businesses, and other entities are taxed by the federal government of the United States.