Which of the Following Statements Is Correct with Respect to §

question 5

Multiple Choice

Which of the following statements is correct with respect to § 1044 (rollover of publicly traded securities gain into specialized small business investment companies) ?

• A)Section 1044 provides for permanent exclusion of gain.
• B)To qualify under § 1044, the proceeds must be reinvested within one year of the sale.
• C)The statutory ceilings on § 1044 treatment are the same for individual and corporate taxpayers.
• D)Only b.and c.are correct.
• E)None of the above.

---

Definitions:

Consumer Durables

Goods that are not for immediate consumption and are able to be used over a longer period, like appliances and vehicles.

Equipment And Software

Tangible assets such as machinery and tools, and intangible assets like software, used in the operation of a business to produce goods or services.

Productive Capacity

The maximum output a company or economy can produce with its current resources, also reflecting the efficiency of production processes.

Financial Assets

Financial assets such as stocks and bonds are claims to the income generated by real assets or claims on income from the government.