Which of the Following Statements Regarding Realized Income Is True

question 59

Multiple Choice

Which of the following statements regarding realized income is true?

• A) Realized income requires some type of transaction or exchange with a second party.
• B) Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so.
• C) Once income is realized it may not be excluded from gross income.
• D) None of these statements is true.

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Definitions:

Adaptive Suspension

A suspension designed to adjust to load and road conditions. On trucks, this usually means an air suspension system. Adaptive suspensions can be either nonelectronic or electronically controlled. The term active suspension is also used.

Chassis Load Conditions

Refers to the various states of load (e.g., weight, distribution, dynamic forces) that a vehicle frame is subjected to during operation.

Self-dampening Spring Oscillation

Refers to a system within a mechanical object that automatically reduces oscillation amplitude over time without external influence.

Multi-leaf Spring Packs

Assemblies of layered leaf springs used in vehicle suspension systems to provide support and absorb shock.