On an involuntary conversion in which the taxpayer does not


On an involuntary conversion in which the taxpayer does not buy replacement property within the replacement period, the gain on the involuntary conversion and any tax due must be reported:

A - In the year the replacement period expires.

B - In the year the involuntary conversion occurred.

C - Never, because the tax year of the conversion would be closed.

D - As soon as the taxpayer knows replacement property will not be purchased.

With an involuntary conversion, what is the time limit to purchase replacement property?

A - Two years from the conversion event.

B - It ends two years after the close of the taxable year the gain is realized.

C - There is no time limit.

D - Five years from the conversion event.

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Financial Accounting: On an involuntary conversion in which the taxpayer does not
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