Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The assignment of income doctrine requires a cash method of accounting for a transferor/shareholder to recognize income when accounts receivable are transferred by the shareholder to the corporation in a Sec. 351 exchange in which no gain is otherwise recognized.
• B)The assignment of income doctrine is a legislative requirement that income be taxed to the person who earns it.
• C)The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers when a sole proprietor transfers substantially all the assets and liabilities of the transferor's trade or business to a controlled corporation.
• D)All of the above are false.

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Definitions:

Morbid Preoccupation

An excessive and unhealthy focus or interest in thoughts or themes considered to be unwholesome or linked to death, disease, or other dark topics.

Death Understanding

The comprehension of the concept of death, its permanence, and the changes it implies, typically developing with age and cognitive growth.

Professional Counseling

A form of assistance provided by certified professionals designed to help individuals deal with personal, social, or psychological challenges and improve their mental health.

Chronic Sorrow

A pattern of recurrent grief or sadness that is often associated with ongoing loss or a chronic illness condition.