Which of the Following Is Not Considered "Constructive Receipt" of Income

question 50

Multiple Choice

Which of the following is not considered "constructive receipt" of income?

• A) Ms. K was informed her check for services rendered was available on December 16, 2012, but she waited until January 16, 2013 to pick up the check.
• B) Earned income of Mr. D was received by his agent on December 30, 2012, but not received by D until January 3, 2013.
• C) Mr. W received a check on December 30, 2012 for services rendered, but was unable to make a deposit until January 3, 2013.
• D) A payment on a sale of real property was placed in escrow on December 16, 2012, but not received by Ms. B until January 10, 2013, when the transaction was closed.

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Definitions:

Internal Rate of Return (IRR)

A financial metric used to estimate the profitability of potential investments.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Present Value (NPV)

The variance between the current value of incoming cash and the current value of outgoing cash throughout a specific duration.