1. If a business property is sold for $460,000 cash and has an adjusted basis of $480,000 which is the taxable result?

   	A.	Recognized loss of $20,000
   	B.	Recognized gain of $20,000
   	C.	Realized gain of $20,000
   	D.	Zero
   	E.	Realized loss of $20,000

2. In the situation of an involuntary asset conversion the replacment property

   	A.	must be similar or related in service or use
   	B.	owner-users must meet the functional use test
   	C.	owner-investors must meet the taxpayer use test
   	D.	all of the above
   	E.	B and C only

3. A price discount does not affect the basis amount of a capital asset.

   True

   False