Diamond Corporation uses the fair value model of accounting for its investment property. The fair values of its property were: December 31, 2020, $ 180,000 and December 31, 2021, $ 195,000. At December 31, 2021, Diamond should Select one: a. report a gain of $ 15,000 in other comprehensive income. b. recognize a gain of $ 15,000 in income. c. defer the gain until the property is sold. d. do nothing [ignore it].

Diamond Corporation uses the fair value model of accounting for its investment property. The fair values of its property were: December 31, 2020, $ 180,000 and December 31, 2021, $ 195,000. At December 31, 2021, Diamond should Select one: a. report a gain of $ 15,000 in other comprehensive income. b. recognize a gain of $ 15,000 in income. c. defer the gain until the property is sold. d. do nothing [ignore it].

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 21P

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