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    Gains and Losses on Sale of Assets

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    Which of the following statements is true?

    I. The entire amount of realized gains and losses from the sale of assets are recognized for tax purposes.
    II. If stock sold or exchanged is not specifically identified, the FIFO (first-in, first-out) method of identification must be used.

    A. I only
    B. II only
    C. Both I and II
    D. Neither I nor II

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    Solution Preview

    Select B.

    I. The entire amount of realized gains and losses from the sale of assets are recognized for tax purposes.
    No, this is only true if the full proceeds were also received. Otherwise, the taxpayer may use installment sales rules and ...

    Solution Summary

    Your tutorial gives you a brief discussion of why each statement is true or not and a reference for further study on the topic.

    $2.19

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