Compare and Contrast the Constructive Receipt Doctrine and the Assignment

question 44

Essay

Compare and contrast the constructive receipt doctrine and the assignment of income doctrine.
In what situations do these doctrines apply? What tax planning strategies does each doctrine limit?

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Definitions:

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal fees, and registration fees.

After-Tax Cash Inflows

After-tax cash inflows represent the net cash a company receives from its operations, investments, or financial activities, after all taxes have been deducted.

Flotation Cost

The total costs a company incurs when it issues new securities, including underwriting fees, legal fees, and registration fees.

Debt-Equity Ratio

Debt-equity ratio is a financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets.