Rationale for Nonrecognition Includes Which of the Following

question 44

Multiple Choice

Rationale for nonrecognition includes which of the following?
I.A refinement of the realization concept, which postpones recognition of appreciation in value until the taxpayer disposes of a property, or its replacement.
II.Under the Substance-over-form doctrine, new property acquired in a transaction is viewed as a continuation of the original investment.
III.The taxpayer lacks wherewithal to pay the tax on a realized gain because the amount realized on the transaction is reinvested in the replacement asset.
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• A)Only II is correct.
• B)Only I is correct.
• C)II and III are correct.
• D)I, II, and III are correct.
• E)Only III is correct.

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Definitions:

UCS Cortical Center

A hypothetical or proposed brain area responsible for processing unconditioned stimuli, which automatically trigger reflexive responses.

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus, such as salivating when tasting food.

Analgesia

The inability to feel pain while still conscious, often induced through use of medication or psychological techniques.

Hyperalgesia

An increased sensitivity to pain, which can be caused by damage to nociceptors or peripheral nerves.