Alex Owns an Office Building Which the State Condemns on January

question 24

Multiple Choice

Alex owns an office building which the state condemns on January 15,2017.Alex receives the condemnation award on April 1,2017.In order to qualify for nonrecognition of gain on this involuntary conversion,what is the last date for Alex to acquire qualified replacement property?

• A)April 1,2019
• B)April 1,2020
• C)December 31,2019
• D)December 31,2020

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Definitions:

Counterparty Risk

The risk that the other party in an agreement will default or fail to live up to their contractual obligations.

Futures Markets

Financial markets that facilitate the buying and selling of future contracts, which are agreements to buy or sell an asset at a future date at a price specified today.

Financial Contracts

Agreements between parties to conduct a financial transaction according to specified terms.

Synthetic Stock Positions

Financial derivative strategies that mimic the outcomes of holding an actual stock, using instruments such as options.