Sophi Finds a Chest Inscribed "Captain Hook" That Contains $500,000

question 37

Multiple Choice

Sophi finds a chest inscribed "Captain Hook" that contains $500,000 of cash while fishing off the shore around New Orleans. The US Customs and the DEA denied knowledge of the cash, so Sophi keeps it.
I.Sophi will not recognize any gross income if the chest contained jewels valued at $500,000, rather than cash at the time of discovery.
II.Recognition is necessary because this is a treasure trove and it is comprised of cash.
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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:

Subsistence

The basic means by which individuals or groups support themselves at a minimum level of subsistence, often involving self-sufficiency without significant trade or economic exchange.

Foreign Affiliation

The association or connection of an individual or entity with a country or organization outside of their own.

Trade Network

A trade network is a complex system of economic exchange involving the movement of goods and services across different regions or countries.

Public Utilities

Companies or organizations that provide essential services such as water, electricity, natural gas, and telecommunications to the public, typically subject to government regulation.