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.

Identify and understand the use of euphemisms in communication.

Recognize the importance of avoiding biased language in professional settings.

Implement the "you" attitude effectively in business communication.

Understand the significance of being fair and objective in communication and how it is perceived.

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Definitions:

Constructive Condition

A condition inferred by law in contracts, implying that certain promises must be fulfilled before other corresponding duties are required.

Impossibility

Impossibility describes a situation where an event or action cannot occur or be performed.

Convey Real Estate

The act of transferring title, ownership, and rights of real estate property from one party to another through a deed or legal document.

Nonperformance

The failure to act or fulfill one’s duties or obligations as agreed or required.