Which of the Following Situations Would Not Be Permitted to Defer

question 8

Multiple Choice

Which of the following situations would not be permitted to defer the recognition of any recapture that might arise from the disposition of an asset?

• A)A customized half-ton truck that belonged to a construction company was sold in 20x0. The proceeds from the sale generated recapture. A new customized truck was purchased fourteen months later in order to carry out the duties of a large contract
• Awarded to the company.
• B)A building that was used for income earning purposes was sold in December 20x0. The proceeds from the sale generated recapture. A new building was purchased in April 20x1. The company's fiscal year-end is December 31st.
• C)A half-ton truck that belonged to a construction company was stolen in 20x0. Insurance proceeds were received which generated recapture. The truck was replaced in 20x1.
• D)A building that was used for income earning purposes was destroyed in a fire. Insurance proceeds were received which generated recapture. A new building was built one and a half years later.

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Definitions:

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of learning.

Conditioned Reinforcer

A stimulus that acquires the ability to reinforce behavior through its link to a primary reinforcer.

Primary Reinforcer

A naturally reinforcing stimulus, such as food or water, that satisfies a basic biological need.

Operant Behavior

Behavior that is controlled or influenced by its consequences, including rewards and punishments, in the context of learning.