Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The assignment of income doctrine requires a cash method of accounting for a transferor/shareholder to recognize income when accounts receivable are transferred by the shareholder to the corporation in a Sec. 351 exchange in which no gain is otherwise recognized.
• B)The assignment of income doctrine is a legislative requirement that income be taxed to the person who earns it.
• C)The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers when a sole proprietor transfers substantially all the assets and liabilities of the transferor's trade or business to a controlled corporation.
• D)All of the above are false.

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Definitions:

Emotional and Social Support

Assistance given to individuals through affection, care, encouragement, and companionship which contributes to their emotional and social well-being.

Common Thread

A recurring theme or a shared characteristic among seemingly disparate elements or ideas.

Good Friend

An individual who provides support, trust, companionship, and respect in a relationship.

Importance of Friends

The crucial role played by friendships in providing emotional support, companionship, and contributing to an individual's overall well-being and happiness.