Which of the Following Statements Best Describes the Tax Law

question 35

Multiple Choice

Which of the following statements best describes the tax law approach to recognizing gain or loss realized in an exchange?

• A) Gain and loss realized is not recognized unless specifically stated otherwise in the Internal Revenue Code.
• B) Gain and loss realized is recognized unless specifically stated otherwise in the Internal Revenue Code.
• C) Gain realized is recognized unless specifically stated otherwise in the Internal Revenue Code, but loss realized is not recognized unless specifically stated otherwise in the Internal Revenue Code.
• D) Loss realized is recognized unless specifically stated otherwise in the Internal Revenue Code, but gain realized is not recognized unless specifically stated otherwise in the Internal Revenue Code.

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Definitions:

Industrial Diseases

Illnesses and conditions that are a direct result of work or occupational environment.

Harmful Chemicals

Substances that can cause damage or adverse effects to organisms upon exposure.

Asbestos

A group of naturally occurring fibrous minerals that are resistant to heat and corrosion, used in construction materials and textiles but can cause lung diseases when inhaled.

Coal

A fossil fuel formed from the remains of ancient plants, used primarily for electricity generation and steel production.