If One Member Sells an Asset with a Realized Gain

question 134

Short Answer

If one member sells an asset with a realized gain to another member of an affiliated group, any gain on the transaction is not recognized at that time; such a deferral applies the ____________________ rule.

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Definitions:

Federal Insurance Company

An insurance provider that is regulated at the federal level, offering various types of insurance policies to protect against specific risks.

Timely

Refers to something done or occurring at a favorable or useful time; prompt.

Assent

Agreement or approval, typically given formally or officially, to a proposition or contract terms.

Offeree

The person or party to whom an offer is made, especially in contract law.