If You Rearrange, Delete, or Add Material in a Subdocument

question 100

True/False

If you rearrange, delete, or add material in a subdocument, you must update all the page and section numbers to reflect your changes.

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Definitions:

Basis

The amount of investment in a property for tax purposes, used to calculate gain or loss on the sale or other disposition of the property.

Condemnation Proceeds

Financial compensation received when property is taken by a government authority through eminent domain.

Recognized Gain

The amount of profit that is realized from the sale of assets that must be reported for tax purposes.

Adjusted Basis

The original cost of a property adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.