Vector Inc

question 59

True/False

Vector Inc.'s office building burned down on October 31,2017.Vector,a calendar-year taxpayer,finally settles with the insurance company on February 3,2018.In order to defer the gain realized on the building,Vector must acquire another office building by February 3,2020.

Recognize how gains or losses are recorded on the disposal of assets.

Understand the accounting treatment for tangible and intangible asset exchanges.

Identify and apply the appropriate treatment for intangible assets, including recognition and amortization.

Understand the calculation of gain or loss on the disposal of long-lived assets.

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Definitions:

Standards

Established criteria or benchmarks that define the quality, safety, and performance requirements for products, services, and procedures.

Expectations

Beliefs or forecasts about what will happen in the future based on current knowledge or trends.

Revenue

The total income generated by a company from its normal business operations.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.