Question 1

The §1231 look-back rule recharacterizes §1231 gains if §1231 losses have created ordinary losses in the last 5 years.

Accepted Answer

A) True 
 B)False

Question 2

A net §1231 gain becomes ordinary while a net §1231 loss becomes long-term capital gain.

Accepted Answer

A) True 
 B)False

Question 3

Bateman Corporation sold an office building that it used in its business for $800,000. Bateman bought the building ten years ago for $600,000 and has claimed $200,000 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Accepted Answer

A)   $40,000 ordinary and $360,000 §1231 gain.
B)   $200,000 ordinary and $200,000 §1231 gain.
C)   $400,000 ordinary gain.
D)   $400,000 capital gain.
E)   None of the choices are correct.F) A) and D)
G) D) and E)

Question 4

Which of the following is how gain or loss realized is calculated?

Accepted Answer

A)   Cash less selling costs.
B)   Cost basis less cost recovery.
C)   Cash less cost recovery.
D)   Amount realized less adjusted basis.
E)   None of the choices are correct.F) D) and E)
G) C) and E)

Question 5

The sale of computer equipment used in a trade or business for 9 months results in the following type of gain or loss?

Accepted Answer

A)   Capital.
B)   Ordinary.
C)   §1231.
D)   §1245.
E)   None of the choices are correct.F) B) and E)
G) A) and B)

Question 6

Taxpayers can recognize a taxable gain on the sale of an asset even though an asset's real economic value has declined.

Accepted Answer

A) True 
 B)False

Question 7

All tax gains and losses are ultimately characterized as either ordinary or capital.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following realized gains results in a recognized gain?

Accepted Answer

A)   Farm machinery traded for farm machinery.
B)   Sale to a related party.
C)   Involuntary conversion.
D)   Iowa cropland exchanged for a Minnesota warehouse.E) A) and D)
F) None of the above

Question 9

Collins Corporation, of Camden, Maine, wants to exchange its manufacturing facility for Rockland Company's building. Both parties agree that Collins's facility is worth $200,000 and that Rockland's building is worth $175,000. Collins will not enter into the transaction unless it qualifies as a like-kind exchange. If Collins wants to avoid gain, what could the parties do to equalize the value exchanged but still allow the exchange to qualify as a like-kind exchange?

Accepted Answer

Rockland could equalize the transaction ...

Question 10

Generally, the amount realized is everything of value received in a sale less selling expenses.

Accepted Answer

A) True 
 B)False

Exam 11: Property Dispositions

Taxpayers can recognize a taxable gain on the sale of an asset even though an asset's real economic value has declined.

Correct Answer
verified

Generally, the amount realized is everything of value received in a sale less selling expenses.

Correct Answer
verified

All tax gains and losses are ultimately characterized as either ordinary or capital.

Correct Answer
verified

The §1231 look-back rule recharacterizes §1231 gains if §1231 losses have created ordinary losses in the last 5 years.

Correct Answer
verified

Bateman Corporation sold an office building that it used in its business for $800,000. Bateman bought the building ten years ago for $600,000 and has claimed $200,000 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Correct Answer
verified

Correct Answer
verified
Rockland could equalize the transaction ...
View Answer

Which of the following is how gain or loss realized is calculated?

Correct Answer
verified

A net §1231 gain becomes ordinary while a net §1231 loss becomes long-term capital gain.

Correct Answer
verified

Which of the following realized gains results in a recognized gain?

Correct Answer
verified

The sale of computer equipment used in a trade or business for 9 months results in the following type of gain or loss?

Correct Answer
verified

Exam 11: Property Dispositions

Taxpayers can recognize a taxable gain on the sale of an asset even though an asset's real economic value has declined.

Correct AnswerverifiedShow Answer

Generally, the amount realized is everything of value received in a sale less selling expenses.

Correct AnswerverifiedShow Answer

All tax gains and losses are ultimately characterized as either ordinary or capital.

Correct AnswerverifiedShow Answer

The §1231 look-back rule recharacterizes §1231 gains if §1231 losses have created ordinary losses in the last 5 years.

Correct AnswerverifiedShow Answer

Bateman Corporation sold an office building that it used in its business for $800,000. Bateman bought the building ten years ago for $600,000 and has claimed $200,000 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedRockland could equalize the transaction ...View AnswerShow Answer

Which of the following is how gain or loss realized is calculated?

Correct AnswerverifiedShow Answer

A net §1231 gain becomes ordinary while a net §1231 loss becomes long-term capital gain.

Correct AnswerverifiedShow Answer

Which of the following realized gains results in a recognized gain?

Correct AnswerverifiedShow Answer

The sale of computer equipment used in a trade or business for 9 months results in the following type of gain or loss?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Rockland could equalize the transaction ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified