If Insurance Proceeds Are Received for Property Used in a Trade

question 17

True/False

If insurance proceeds are received for property used in a trade or business, a casualty transaction can result in recognized gain or recognized loss.

---

Definitions:

Ineffective

Not producing the desired outcome or failing to achieve the intended result.

Aversive Qualities

Characteristics of a stimulus that are unpleasant or uncomfortable, which can lead to avoidance behavior.

Negative Contrast Effects

Negative contrast effects occur when a lesser stimulus reduces the response strength or preference for the more favorable stimulus that was previously established.