The State Condemned Cassidy's Land on November 25,2014

question 41

Multiple Choice

The state condemned Cassidy's land on November 25,2014.The land has a $400,000 basis.Cassidy received insurance proceeds of $610,000 on January 27,2015.Cassidy has until what date to defer the gain under the involuntary conversion rules?

• A) December 31,2016.
• B) November 25,2016.
• C) December 31,2017.
• D) December 31,2018.

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Definitions:

Corporation's Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Liability

A financial obligation or amount owed by a company to external parties or creditors, which must be settled through the transfer of assets or services.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Financing Activity

Transactions involving the exchange of financial instruments, typically related to the borrowing, repaying, or raising of capital for a company.