Rationale for Nonrecognition Includes Which of the Following

question 44

Multiple Choice

Rationale for nonrecognition includes which of the following?
I.A refinement of the realization concept, which postpones recognition of appreciation in value until the taxpayer disposes of a property, or its replacement.
II.Under the Substance-over-form doctrine, new property acquired in a transaction is viewed as a continuation of the original investment.
III.The taxpayer lacks wherewithal to pay the tax on a realized gain because the amount realized on the transaction is reinvested in the replacement asset.
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• A)Only II is correct.
• B)Only I is correct.
• C)II and III are correct.
• D)I, II, and III are correct.
• E)Only III is correct.

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Definitions:

Amniocentesis

A medical procedure used in prenatal diagnosis, where a small amount of amniotic fluid is extracted from the amniotic sac surrounding a developing fetus.

Karyotype

An individual's complete set of chromosomes, visually represented in a photograph or diagram which displays the chromosomes arranged by size and number.

Pedigree

A pedigree is a diagram that depicts the biological relationships between an organism and its ancestors, often used to study the inheritance of specific traits or diseases.

Trisomy 21

A genetic disorder caused by the presence of an extra 21st chromosome, also known as Down syndrome.