Each of the Following Is True of Deferral of Gain

question 3

Multiple Choice

Each of the following is true of deferral of gain attributable to the involuntary conversion of personal property with the exception of

• A)gain deferral is elective,except for direct conversions.
• B)the replacement property may be acquired by gift,inheritance,or purchase.
• C)qualifying replacement property must be acquired within a specified time period.
• D)replacement property must be similar or related in service or use to the converted property.

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Definitions:

Tricycle

A vehicle similar to a bicycle, but with three wheels (two at the back and one at the front), often used by young children or for specialized utility purposes.

Vehicle

A means of transporting people or goods, including cars, bicycles, boats, airplanes, and other conveyances.

Differentia

The characteristic or set of characteristics that distinguishes one thing or category of things from another.

Camera

A device for capturing visual images in the form of photographs, video, or both, electronically or on film.