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.

---

Definitions:

Responding

The act of reacting to a stimulus or situation, often used in the context of behavioral psychology.

Contingency Management

A behavioral strategy that modifies behavior by changing the consequences, typically through rewards or punishments, contingent on the behavior.

Assessment

The evaluation or measurement of the nature, ability, or quality of something, often applied within educational, psychological, or performance contexts.

Behavior Modification

Techniques for changing behavior that rely on Pavlovian conditioning or instrumental or operant conditioning.