When the Cost of Replacement Property Is Less Than the Amount

question 83

True/False

When the cost of replacement property is less than the amount realized on an involuntary conversion,gain will be recognized.The recognized gain will be equal to the amount realized over the cost of the replacement property,but not more than the total realized gain.

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Definitions:

Urinary Bladder

A muscular chamber that holds urine prior to its expulsion from the body.

Vasoconstriction

The narrowing of blood vessels, which increases blood pressure and decreases blood flow to certain areas.

Branch

A part of a tree that grows out from the trunk or from a bough.

Skeletal Muscle

A type of striated muscle tissue which is attached to bones and is responsible for their movement.