Asked by Arlisa Flores on Jun 06, 2024
Verified
The installment method cannot be used to report the gain on which of the following assets?
A) Land used in a trade or business.
B) Stock traded on a securities market.
C) Building used in a trade or business.
D) Stock in a privately-held business.
Installment Method
A method of reporting income from a sale over several years, recognizing revenue as payments are received.
Securities Market
A financial market where securities such as stocks, bonds, and options are bought and sold, crucial for raising capital and allocating resources in the economy.
- Comprehend the installment method of reporting gains and the types of assets eligible for this treatment.
Verified Answer
ZK
Zybrea KnightJun 10, 2024
Final Answer :
B
Explanation :
The installment method can be used to report gain from the sale of assets such as land, buildings, and stock in a privately-held business. However, it cannot be used for stock traded on a securities market.
Learning Objectives
- Comprehend the installment method of reporting gains and the types of assets eligible for this treatment.