If Sec 1231 Applies to the Sale or Exchange of an an Unharvested

question 63

Multiple Choice

If Sec. 1231 applies to the sale or exchange of an unharvested crop sold with land, the costs of producing the crop are

• A) deducted when incurred if the land is sold but capitalized if the land is exchanged.
• B) capitalized.
• C) deducted as an expense of operations when incurred and also deducted from the sales price at the time of the sale.
• D) deducted as an expense of operations when incurred.

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Definitions:

Substantia Gelatinosa

A region in the dorsal horn of the spinal cord involved in processing pain and temperature.

Dorsal Horns

Regions in the spinal cord where sensory neurons enter and transmit signals to the brain, involved in processing touch, pain, and temperature.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back and transmits messages between the brain and the rest of the body.

Neurotransmitters

Chemical substances in the body that transmit signals across a chemical synapse from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.