Realized Gain or Loss Must Be Recognized Unless a Specific

question 96

True/False

Realized gain or loss must be recognized unless a specific Code section provides for nonrecognition treatment.

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Definitions:

Share Capital

The total value of a company's shares of stock that have been issued to shareholders.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders, but retained by the company to reinvest in its core business or to pay debt.

Contributed Surplus

Contributed Surplus is an equity account that reflects excess amounts received by a company over the par value of its stock from the sale of shares directly to investors.

Common Shares

Equity investments that represent ownership in a company, granting holders voting rights and a share in the company's profits through dividends.