Identify the Rule That States That Income Has Been Realized

question 2

Multiple Choice

Identify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income (e.g., no obligation to repay the amount) .

• A)Claim of right
• B)Constructive receipt
• C)Return of capital principle
• D)Wherewithal to pay
• E)None of the choices are correct.

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Definitions:

Beverage

A liquid intended for human consumption to fulfill thirst and sometimes to provide nutrition or pleasure.

Concept

An abstract idea or a mental symbol used to understand or categorize things by grouping them based on common characteristics.

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Movable articles in a room or establishment that make it fit for living or working.

Neptune

The eighth planet from the Sun in our solar system, known for its deep blue color and strong winds.