Which of the Following Statements Is True Concerning the Disposition

question 66

Multiple Choice

Which of the following statements is true concerning the disposition of an installment note?

• A)Deferred gain is not recognized by the transferor if the installment note is a non-taxable transfer to a controlled corporation.
• B)Deferred gain must be recognized only if the installment note was transferred as a gift to a related party.
• C)Transfer of an installment obligation to another party will not trigger immediate recognition of deferred gain.
• D)Deferred gain must be recognized if the note is transferred to the owner's estate at his death.
• E)None of these.

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