Marta Finds a Chest Inscribed "Jack Sparrow" That Contains $750,000

question 107

Multiple Choice

Marta finds a chest inscribed "Jack Sparrow" that contains $750,000 of cash while diving among the coral reefs off Key West, Florida. The US Customs and the DEA denied knowledge of the cash, so Marta keeps it.
I.Recognition will not occur because the windfall would not be considered as "derived from capital or from labor."
II.The All-inclusive Income Concept explains the recognition of the cash as income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Tactics

Specific actions or strategies designed to achieve a short-term goal or to deal with a particular situation.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealing with third parties.

Symbolic Rewards

Non-financial incentives such as recognition, awards, or titles given to acknowledge an individual’s or team's achievements.

Mutual Loyalty

A reciprocal commitment or allegiance between individuals or within a group, fostering trust and support.