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:

Gold Mine

A site or mine from which gold is extracted; metaphorically, a source of wealth or a valuable resource.

Office Building

A structure designed primarily for the purpose of housing offices and businesses, providing a workspace for employees and services for clients.

Assembly Line

A production process that breaks down the manufacture of a good into steps that are completed in a pre-defined sequence, often on a conveyor belt, to increase efficiency.

Opportunity Cost

The neglect of possible enhancements from other avenues when one direction is pursued.