Investment Is

question 311

Multiple Choice

Investment is

• A) a flow concept and is made up of fixed investment and inventory investment.
• B) a flow concept and is made up of fixed investment.
• C) a stock concept and is made up of fixed investment and inventory investment.
• D) a stock concept and is made up of fixed investment.

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Definitions:

FMV

Fair Market Value, the price that property would sell for on the open market.

Basis

The amount of investment in property for tax purposes; used to determine the gain or loss on the sale, exchange, or disposal of the property.

Taxable Gain

The profit arising from the sale or exchange of an asset that is subject to income tax.

Charitable Contribution

Donations made to qualified organizations that may be tax-deductible for the donor.