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The Provisions for Involuntary Conversion

Question 10

Multiple Choice

The provisions for involuntary conversion:


A) Apply to gains only,not losses.
B) Require taxpayers to always defer gains.
C) State that the property must be replaced within the year following the conversion.
D) Require that gain is recognized in an amount equal to the lesser of the gain realized or to the extent that "boot" was received.

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