Which of the Following Would Extinguish the § 1245 Recapture

question 12

Multiple Choice

Which of the following would extinguish the § 1245 recapture potential?

• A) An exchange of depreciable business equipment for like-kind business equipment with gain realized, but not recognized.
• B) A nontaxable incorporation under § 351.
• C) A nontaxable contribution to a partnership under § 721.
• D) A nontaxable reorganization.
• E) None of the above.

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Definitions:

Aversive Conditioning

A type of behavioral learning in which an unpleasant or harmful stimulus is associated with a particular behavior to decrease the likelihood of that behavior occurring.

Progressive Relaxation

A technique for reducing stress and anxiety by tensing and then relaxing each muscle group in the body sequentially.

Exposure Therapy

A psychological treatment that involves confronting fears and anxieties by gradual, controlled exposure to the objects, activities, or situations that cause them.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders by gradually exposing them to the anxiety source while teaching them relaxation techniques.