Question

Which statement best describes the concept of realization as it applies to gain or loss? A. Realization is the recording of gain or loss on a tax return. B. Realization is the result of an exchange of property rights in a transaction. C. Realization is the excess of amount realized over adjusted basis. D. Realization is the excess of adjusted basis over amount realized.

Answer 1

B, Realization is the result of an exchange of property rights in a transaction.

Step-by-step explanation: