The Deferral of a Gain Realized on an Involuntary Conversion

question 54

True/False

The deferral of a gain realized on an involuntary conversion is mandatory.

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Definitions:

Alien Corporations

Companies that are incorporated in one country but do business in another.

Professional Corporation Acts

Specific laws enacted to regulate the formation and operation of corporations providing professional services, like legal or medical practices.

Certified Public Accountant

A professional designation given to qualified accountants who have passed a state licensing examination and met additional education and experience requirements.

Incorporate

To form into a legal corporation, which involves registering with the state and creates an entity that is legally separate from its owners.