Which of the Following Is Not a Necessary Condition for Income

question 96

Multiple Choice

Which of the following is not a necessary condition for income to be included in gross income?

• A) income must be realized
• B) income must be paid in cash
• C) income cannot be excluded by law
• D) income must be made available to a taxpayer on the cash basis
• E) All of these

---

Definitions:

Strike Price

The predetermined price at which an option's holder has the right to purchase (for a call option) or sell (for a put option) the underlying asset.

Option

An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.

European Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a certain asset at a specified price (strike price) on a specified date.