Which of the Following Statements Is Correct with Respect to the Disposition

question 56

Multiple Choice

Which of the following statements is correct with respect to the disposition of a valuable coin collection?

• A)If a loss occurs, it cannot be deducted against any source of income.
• B)If a loss occurs, one-half of this amount can be applied against one-half of any capital gain.
• C)If a gain occurs, one-half of this amount can be offset by allowable capital losses on any disposition of capital property.
• D)If a gain occurs it will not be taxed because this is personal use property.

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Definitions:

External Motivation

The drive to perform a task or participate in an activity because of external rewards or pressures, as opposed to internal desire or satisfaction.

Positivism

a philosophical theory stating that certain ("positive") knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Exotic Species

are species that are introduced into a new habitat where they are not naturally found, often causing ecological disruption.