Ray Rambler's Office Building with a Basis of $75,000 Was

question 51

True/False

Ray Rambler's office building with a basis of $75,000 was condemned by the county which paid him $120,000 as compensation. He purchased a new new office one year later for $105,000. Ray is entitled to postpone all of the $45,000 realized gain.

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Definitions:

Receivable Accounts

Balances of money due to a company for goods or services provided that have not yet been paid by customers.

Collection Time

The average period that a company takes to collect payments from its customers after a sale has been made, impacting cash flow and liquidity.

Processing Delay

The time lag between the initiation and completion of a process, often seen in transaction processing or manufacturing operations.

Availability Delay

The lag between the deposit of a check and the moment the funds become available in the account.