If the Taxpayer Qualifies Under § 1033 (Nonrecognition of Gain

question 17

Multiple Choice

If the taxpayer qualifies under § 1033 (nonrecognition of gain from an involuntary conversion) and the amount reinvested in replacement property exceeds the amount realized,the basis of the replacement property is:

• A)The cost of the replacement property.
• B)The fair market value of the involuntarily converted property minus the postponed gain.
• C)The cost of the replacement property minus the postponed gain.
• D)The amount realized.
• E)None of these.

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Definitions:

Internal Consistency

Internal consistency is a measure of the reliability of a test or scale; it assesses the extent to which all parts or items of a survey measure the same concept or construct and therefore reflects the interrelatedness of the items within the test.

Cronbach's Alpha

A measure of internal consistency or reliability of a psychometric instrument, indicating how well the items in a test measure the same underlying concept.

Internal Consistency

A measure of the correlation between multiple items in a test that assess the same construct.

Pre-Tests

Assessments given before a treatment or intervention to establish baseline levels against which changes can be measured.