Choose the Word or Phrase in [ ] Which Will

question 55

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If a loss is certain to occur,there is [a | no] risk.

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Definitions:

Inside Basis

The cost basis of an asset inside a partnership or other entity, reflecting its original cost plus adjustments.

Recognize Gain

To report the increase in value of an asset when it is sold or disposed of, for tax purposes.

Partnership Basis

The amount invested in a partnership by the partners, used to determine gain or loss upon withdrawal or dissolution of the partnership.

Section 179 Expense

A U.S. tax code provision allowing businesses to deduct the full purchase price of qualifying equipment or software within a tax year instead of capitalizing and depreciating it over time.