If One Member of an Affiliated Group Sells an Asset

question 117

Short Answer

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

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Definitions:

Ground Meristem

The part of a plant embryo that develops into the ground tissue of the plant, which includes the cortex and pith.

Procambium

A primary meristematic tissue in plants, which differentiates into vascular tissues (xylem and phloem).

Primary Xylem

The part of the xylem (the vascular tissue in plants that conducts water and dissolved nutrients upward from the root) that forms first, mainly in seedlings and young plants.

Secondary Xylem

The part of a plant that contributes to the growth of stem thickness and acts as a conduit for water and nutrients.