A realization of gain or loss occurs
A)When the seller has an unqualified right to collect the purchase price
B)When the seller receives cash or cash equivalents in payment of the purchase price
C)When possession of the burdens and benefits of ownership are transferred to the buyer
D)Under any circumstance listed above, depending in part on the accounting method used by the taxpayer

Question

Quizplus · Accepted Answer

A realization of gain or loss can occur under various circumstances, including when the seller has an unqualified right to collect the purchase price, when cash or cash equivalents are received, or when the burdens and benefits of ownership are transferred to the buyer. The specific circumstance that triggers realization can depend on the accounting method used by the taxpayer.

A Realization of Gain or Loss Occurs