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In applying the reasonable-basis test,courts tend to
Gain
An increase in wealth, assets, or profits, often realized from investments or other financial transactions.
Fixed Assets
Long-term tangible assets, such as buildings, machinery, and equipment, that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.
Investing Activity
A category in the cash flow statement that shows how much money has been spent on or gained from investment operations, excluding amounts related to day-to-day operations.
Indirect Method
A method for preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred income, and changes in working capital to compute net cash from operating activities.
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