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:

Lower-Class Neighborhoods

Urban or rural areas characterized by economic disadvantage, often leading to higher rates of crime, unemployment, and social challenges.

Hospitalize

The act of admitting someone into a hospital for medical treatment, observation, or care.

Mentally Ill

Pertains to persons experiencing mental health conditions that impact their emotions, thought processes, and actions.

Indefinite Period

A span of time with no specified end; often used in contexts where durations are uncertain or open-ended.