Joyce,a Farmer,has the Following Events Occur During the Tax Year

Multiple Choice

Joyce,a farmer,has the following events occur during the tax year.Which of the events qualify as an involuntary conversion under § 1033 (nonrecognition of gain from an involuntary conversion) ?

A) Her farm tractor is hauled to the city dump because it is worn out.
B) She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd in preparation for her retirement.
C) Her personal residence,adjusted basis of $100,000,is condemned to make way for an interstate highway.She recovers condemnation proceeds of $175,000.
D) She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd due to a reduction in milk prices.
E) None of these.