Which of the Following Situations Would Not Be Permitted to Defer

question 4

Multiple Choice

Which of the following situations would not be permitted to defer the recognition of any recapture that might arise from the disposition of an asset?

• A)A building that was used for income earning purposes was destroyed in a flood.Insurance proceeds were received which generated recapture.A new building was built 18 months later.
• B)A piece of equipment that belonged to a company was stolen in November 2019.Insurance proceeds were received which generated recapture.The equipment was replaced in December of 2020.
• C)A piece of equipment that belonged to a construction company was sold in June 2019.The proceeds from the sale generated recapture.A new piece of equipment was purchased in January of 2020.The company's fiscal year-end is December 31^st.
• D)A building that was used for income earning purposes was sold in December 2019.The proceeds from the sale generated recapture.A new building was purchased in April 2020.The company's fiscal year-end is December 31^st.