In a Deferred Like-Kind Exchange, the Like-Kind Property to Be

question 49

True/False

In a deferred like-kind exchange, the like-kind property to be received must be identified within 45 days and acquired within 180 days from the initial exchange.

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Definitions:

CICA Handbook

A comprehensive accounting standards guide issued by the Canadian Institute of Chartered Accountants for private sector and not-for-profit organizations.

Encumbrance System

an accounting system used primarily in governmental accounting to record commitments made on future expenditures before they are actually incurred.

Commitments

Obligations that an entity has agreed to fulfill in the future, which can include financial contracts, purchase agreements, or other binding agreements.

Acquisition

The process of acquiring control of another company by purchase of its shares or assets.