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:

Avoidance/Avoidance Conflict

A psychological dilemma where an individual must choose between two equally undesirable options or outcomes.

Lewin

Kurt Lewin was a pivotal figure in psychology who is often considered the father of social psychology; he introduced concepts such as field theory and the change management theory known as unfreeze-change-refreeze.

Petty Annoyances

Minor irritations or inconveniences that can lead to frustration or discomfort, though not significantly affecting one's overall wellbeing.

Irritations

Irritations are minor annoyances or discomforts that can cause frustration or anger, often resulting from environmental factors or interpersonal interactions.