Identify the Rule Dictating That on a Sale of an Asset

question 62

Multiple Choice

Identify the rule dictating that on a sale of an asset a taxpayer need only include the incremental gain in gross income rather than the entire proceeds from the sale:

• A)Tax benefit rule
• B)Constructive receipt
• C)Return of capital principle
• D)Wherewithal to pay
• E)None of the choices are true

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected overhead based on standard costs.

November

The eleventh month of the Gregorian calendar, following October and preceding December.

Variable Overhead Efficiency Variance

The difference between the expected and actual variable overhead costs, based on the efficient use of production resources.

Variable Overhead Efficiency Variance

The difference between the budgeted and actual variable overhead costs, attributable to differences in the efficiency of utilizing resources.