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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Definitions:

Attention Deficit Disorder

A mental health disorder characterized by a persistent pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.

Control Drug

Control Drug often refers to a regulated substance whose manufacture, possession, and use are governed by law due to the potential for abuse or harm.

Central Tendency

A statistical measure that identifies a single value as representative of the middle or center of a distribution of data.

Mean

A statistical measure representing the arithmetic average of a set of numbers, calculated by adding all the numbers and dividing by the count of those numbers.