Examlex
If the recognized gain on an involuntary conversion equals the realized gain because of a reinvestment deficiency, the basis of the replacement property will be more than its cost (cost plus realized gain).
Fair-Value Allocations
The process of assigning fair values to different assets and liabilities when a company is acquired, as part of the purchase price allocation.
Net Income
The net income a business earns following the deduction of all costs and taxes from its gross revenue.
Dividends
Profit payouts by a corporation to its shareholders, usually as a method of distributing earnings.
Initial Value Method
An accounting approach for investments where the investment is recorded at its original cost without subsequent adjustments for changes in market value.
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