Twining Corporation Has Some Land It Wants to Trade for a Building

question 52

Multiple Choice

Twining Corporation has some land it wants to trade for a building owned by Clopp Corporation.Clopp does not want to exchange the building because it wants to recognize its loss on the building.Twining, however, does not want to recognize its gain.What alternative(s) does Twining have that will allow it to avoid recognizing gain?

• A)Twining can sell its land to a third party and take the money and purchase the building.
• B)Twining can have a third party purchase the building and have the third party trade for the land.
• C)Twining can complete a nonsimulataneous exchange within one year of identifying the desired property.
• D)All of the above are acceptable alternatives.

Recognize various forms of tax assistance and fraud threats.

Understand the changes in tax laws and their effects on taxpayers.

Distinguish between tax-exempt and tax-deferred income.

Know the taxation aspects of personal and business income, including deductions and allowable contributions.

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Definitions:

Prokaryotic Translation

The process by which mRNA is decoded by a ribosome to produce a specific protein in prokaryotes, organisms without a nucleus.

Initiation Complex

A complex of proteins and RNA that forms on mRNA to begin the process of translating RNA into a polypeptide chain in the cell.

Nonsense Mutation

A base-pair substitution mutation that results in an amino acid–specifying codon being changed to a termination (stop) codon; when the abnormal mRNA is translated, the resulting protein is usually shortened and nonfunctional. Compare with missense mutation.

Codon

A sequence of three nucleotides that together form a unit of genetic code in a DNA or RNA molecule, representing a specific amino acid.