Which of the Following Is/are Correct Regarding Involuntary Conversions

question 112

Multiple Choice

Which of the following is/are correct regarding involuntary conversions?
I.Gains may be deferred if the property involuntarily converted is replaced with property that is similar to or related in service or use to the converted property.
II.Deferral of gains is elective only if direct conversion is made into similar property.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the term to oneself.

Rote Repetition

The process of learning or memorizing something through continuous repetition without understanding the underlying meaning.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "knew-it-all-along" effect.

Monday Morning

A term often symbolizing the start of the work or school week, associated with a return to routines after the weekend.