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:

Data Reduction

The process of reducing “raw” data to a simpler form by using, for example, summary statistics, tables, or graphs.

Raw Data

This term refers to unprocessed data collected directly from sources, which has not yet been cleaned, sorted, or analyzed.

Patterns

Recurrent designs or sequences observed in data or phenomena.

Content Analysis Coding Scheme

A systematic framework for interpreting and categorizing textual information in research, often used to analyze communication patterns.