4. Which of the following situations would not be permitted to defer the recognition of any recapture that might arise from the disposition of an asset? A A building that was used for income earning purposes was destroyed in a flood. Insurance proceeds were received which generated recapture. A new building was built 18 months later. A piece of equipment that belonged to a company was stolen in November 2019. Insurance proceeds were received which generated recapture. The equipment was replaced in December of 2020. B C A piece of equipment that belonged to a construction company was sold in June 2019. The proceeds from the sale generated recapture. A new piece of equipment was purchased in January of 2020. The company's fiscal year-end is December 31st. D. A building that was used for income earning purposes was sold in December 2019. The proceeds from the sale generated recapture. A new building was purchased in April 2020. The company's fiscal year-end is December 31st. none of the above
4. Which of the following situations would not be permitted to defer the recognition of any recapture that might arise from the disposition of an asset? A A building that was used for income earning purposes was destroyed in a flood. Insurance proceeds were received which generated recapture. A new building was built 18 months later. A piece of equipment that belonged to a company was stolen in November 2019. Insurance proceeds were received which generated recapture. The equipment was replaced in December of 2020. B C A piece of equipment that belonged to a construction company was sold in June 2019. The proceeds from the sale generated recapture. A new piece of equipment was purchased in January of 2020. The company's fiscal year-end is December 31st. D. A building that was used for income earning purposes was sold in December 2019. The proceeds from the sale generated recapture. A new building was purchased in April 2020. The company's fiscal year-end is December 31st. none of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. Which of the following situations would not be permitted to defer the recognition of any recapture that
might arise from the disposition of an asset?
A
A building that was used for income earning purposes was destroyed in a flood. Insurance proceeds
were received which generated recapture. A new building was built 18 months later.
A piece of equipment that belonged to a company was stolen in November 2019. Insurance
proceeds were received which generated recapture. The equipment was replaced in December of
2020.
B
A piece of equipment that belonged to a construction company was sold in June 2019. The
proceeds from the sale generated recapture. A new piece of equipment was purchased in January of
2020. The company's fiscal year-end is December 31st.
D. A building that was used for income earning purposes was sold in December 2019. The proceeds
from the sale generated recapture. A new building was purchased in April 2020. The company's fiscal
year-end is December 31st.
none of the above
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