In Which of the Following Situations Does the Taxpayer Have

question 63

Multiple Choice

In which of the following situations does the taxpayer have a claim of right to the payment received?
I.Ellen is on the Carlyle city council. She accepts $5,000 from a contractor who is seeking rezoning of his land before the commission on the condition that Ellen supports the rezoning. The payment is illegal under state law and Ellen will have to repay the $5,000 if the arrangement with the contractor is discovered.
II.Alan's automobile is damaged in an automobile accident. Because he uses the automobile in his job, his employer gives him $4,000 to have the car repaired. The employer will withhold $100 per paycheck until the $4,000 is repaid.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Identity Cohesion

A psychological state where an individual’s sense of self is unified and consistent over time.

Role Confusion

A situation in which an individual is unsure about their role or identity, often occurring during adolescence as part of Erikson’s stages of psychosocial development.

Generativity/Stagnation

A stage in Erik Erikson's theory of psychosocial development where adults strive to create or nurture things that will outlast them, versus a sense of inactivity and personal impoverishment.

Erikson

Known for outlining the eight stages of psychosocial development which track an individual's progression and conflicts from infancy to late adulthood.