Duncan Purchased State of Wisconsin General-Purpose Bonds at a Cost

question 69

Multiple Choice

Duncan purchased State of Wisconsin general-purpose bonds at a cost of $3,400 in 2012. He receives $170 interest on the bonds in 2012, 2013, and 2014. In 2014, he sells the bonds for $3,800. Duncan excludes the bond interest, but must include a $400 capital gain in his 2014 gross income. Which of the following Concepts, Constructs, and/or Doctrines help in forming the basis for this treatment? I. Capital Recovery Concept. II. Legislative Grace Concept.

• 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:

Deprived

Suffering a severe lack of basic material and cultural benefits, usually related to poverty or lacking social contact and communication.

REM Sleep

A stage of sleep characterized by rapid eye movements, low muscle tone, and vivid dreaming, considered important for emotional regulation and memory consolidation.

Selectively Deprived

The condition of being intentionally restricted or denied access to certain stimuli or experiences, often in a research context to study the effects of such deprivation.

REM Sleep

A phase of sleep characterized by rapid eye movement, increased brain activity, vivid dreaming, and temporary muscle paralysis.