A Corporation Owns Many Acres of Timber,which It Acquired Three

question 6

Multiple Choice

A corporation owns many acres of timber,which it acquired three years ago,and which has a $120,000 basis.The timber was cut last year for use in the corporation's business.The FMV of the timber on the first day of last year was $270,000.The corporation made the appropriate election to treat the cutting as a sale or exchange.The timber is sold for $300,000 this year.The tax result this year is

• A)recognition of capital gain of $30,000.
• B)recognition of Sec.1231 gain of $30,000.
• C)recognition of ordinary income of $30,000.
• D)no income recognized since all recognition occurs in the year of the cutting of the timber.

Distinguish between civil and criminal law, including processes and outcomes.

Understand the role and impact of the Charter of Rights and Freedoms on Canadian law.

Recognize the importance of negotiation in dispute resolution and the elements contributing to its success.

Understand the procedural steps and requirements involved in civil lawsuits.

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Definitions:

Management

The act of directing and controlling a group of people or an organization to achieve a goal through the use of resources efficiently and effectively.

Bargaining

The process of negotiating the terms of an agreement or transaction between parties with differing interests.

Americans

Residents or citizens of the United States of America.

Unions

Organizations formed by workers to protect their rights and interests, including negotiating wages and working conditions with employers.