Question

Termination of an asset’s service due to theft, fire, etc, is called:

Group of answer choices

special assessment.

nonreciprocal transfers.

involuntary conversion

speculation.

Answer 1

Answer:
(c) Involuntary Conversion

Explanation:
Involuntary conversion is the conversion of a property into similar or dissimilar property because of theft, confiscation or destruction of the property. Thus, termination of an assets service due to theft, fire, etc. is called involuntary conversion.
                        Special assessment is a specific tax levied from private property owners to meet the requirements of public improvements. Nonreciprocal transfer is the transfer of an asset as a gift or donation without any expectation of payment. Speculation is the trading of financial instruments with high risk, in the expectation of returns. Thus (a), (b) and (d) are not the answers.

*Hope you find this useful. Please give a thumbs up if this was helpful!