The Earliest Date That Condemned Property Can Be Replaced and Still

question 51

Multiple Choice

The earliest date that condemned property can be replaced and still qualify for involuntary conversion (nonrecognition) treatment is

• A)The date of the actual condemnation.
• B)The date of the threat of condemnation.
• C)Two years before the actual condemnation.
• D)Two years before the threat of condemnation.
• E)Three years after the date of the condemnation.

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Definitions:

Receivables Financing

A type of financing where a company uses its accounts receivable as collateral to secure short-term financing, improving liquidity.

Operating Cycle

The time period between the acquisition of inventory by a business and the collection of cash from accounts receivable.

Inventory

The total amount of goods or materials held by a company for the purpose of resale or production.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.