When the cost of replacement property is less than the amount realized on an involuntary conversion,gain will be recognized.The recognized gain will be equal to the amount realized over the cost of the replacement property,but not more than the total realized gain.

Question

Quizplus · Accepted Answer

When the cost of replacement property is less than the amount realized from an involuntary conversion, the gain recognized is the excess of the amount realized over the cost of the replacement property, limited to the total realized gain.

When the Cost of Replacement Property Is Less Than the Amount