Fte Following Statements About Dispositions of Installment Obligations Are All

question 54

Multiple Choice

fte following statements about dispositions of installment obligations are all true, except:

• A) If a father sells property at a gain to his daughter for an installment obligation, then forgives one of more installments, gain is recognized by the father, or his estate.
• B) A sale of an installment obligation to the spouse for its fair market value does not accelerate the gain.
• C) A gift of an installment obligation triggers gain, even if no consideration is received.
• D) If the seller elected out of the installment method, a disposition of the obligation may result in a loss, but not in gain, since the gain was recognized up-front.

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Definitions:

Stock Prices

The market price at which shares of public companies are bought and sold, reflecting the value that investors place on these companies.

Price Level

The overall current average price of goods and services within the economic framework.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year at constant prices.

Short Run

A period in which at least one input is fixed, and only some of the production inputs can be varied.