Identify the Rule Dictating That on a Sale of an Asset

question 7

Multiple Choice

Identify the rule dictating that on a sale of an asset a taxpayer need only include the incremental gain in gross income rather than the entire proceeds from the sale:

• A) Tax benefit rule
• B) Constructive receipt
• C) Return of capital principle
• D) Wherewithal to pay
• E) None of these

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Definitions:

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Detrimental

Refers to something that causes damage, harm, or a negative effect.

Managerial Control

The authority and processes through which managers direct and organize resources, activities, and people to achieve organizational goals.

Job Classifications

A system of categorizing and organizing jobs based on duties, responsibilities, and often, compensation levels.