The Installment Method Cannot Be Used to Report the Gain

question 52

Multiple Choice

The installment method cannot be used to report the gain on which of the following assets?

• A)Land used in a trade or business.
• B)Stock traded on a securities market.
• C)Building used in a trade or business.
• D)Stock in a privately-held business.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Currencies

Systems of money in common use, particularly for people in a nation.