Which of the Following Would Extinguish the § 1245 Recapture

question 4

Multiple Choice

Which of the following would extinguish the § 1245 recapture potential?

• A)An exchange of depreciable business equipment for like-kind business equipment with gain realized but not recognized.
• B)A nontaxable incorporation under § 351.
• C)A nontaxable contribution to a partnership under § 721.
• D)A nontaxable reorganization.
• E)None of these.

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Definitions:

Ethics Audit

A systematic evaluation of an organization's ethics programs and practices, intended to identify potential risks and areas for improvement in ethical conduct.

Ethics Auditing

The systematic examination and evaluation of an organization's ethical policies, practices, and performance to ensure accountability and alignment with ethical standards.

Financial Auditing

The process of examining an organization's financial statements to ensure they are accurate and conform to laws and regulations.

Ethics Audit

A systematic evaluation of an organization's ethics policies and practices, aiming to identify ethical strengths and weaknesses.