Joyce,a Farmer,has the Following Events Occur During the Tax Year

question 101

Multiple Choice

Joyce,a farmer,has the following events occur during the tax year.Which of the events qualify as an involuntary conversion under § 1033 (nonrecognition of gain from an involuntary conversion) ?

• A)Her farm tractor is hauled to the city dump because it is worn out.
• B)She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd in preparation for her retirement.
• C)Her personal residence,adjusted basis of $100,000,is condemned to make way for an interstate highway.She recovers condemnation proceeds of $175,000.
• D)She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd due to a reduction in milk prices.
• E)None of these.

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Definitions:

Social Self-Esteem

One's perception of their own worth as it pertains to their social relationships and standing within a group.

Learned Helplessness

A psychological condition in which an individual believes they have no control over the outcomes of situations, due to a history of failed attempts to control the environment.

Success

The achievement of a set goal, objective, or desired outcome, often recognized through accomplishment, wealth, or recognition.

Ability

A person's level of competence or skill in performing a specific task or in a particular area of work or study.