Identify Which of the Following Statements Is True

question 91

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• 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 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.
• D) All of the above are false.

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Definitions:

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a particular price level in a given time period.

Dollars per Unit

A measure of cost or value expressed in terms of the amount of dollars per individual unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant can significantly influence prices.

Build A Bear Shop

A retail company and concept where customers can create, personalize, and purchase their own stuffed animals through an interactive process.