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:

Church Of England

The primary state church in England, a Protestant Anglican church with Queen Elizabeth II as its supreme governor.

Seventeenth Century

A period from 1601 to 1700 in the Gregorian calendar, marking a phase of significant developments in global exploration, science, and cultural exchanges.

Catholicism

The Christian denomination led by the Pope in Rome, characterized by its sacramental system and doctrines such as the veneration of saints.

Virginia House Of Burgesses

The first democratically-elected legislative body in British North America, established in 1619, setting a precedent for representative government in the American colonies.