Duncan Purchased State of Wisconsin General-Purpose Bonds at a Cost

question 31

Multiple Choice

Duncan purchased State of Wisconsin general-purpose bonds at a cost of $3,400 in 2015.He receives $170 interest on the bonds in 2015,2016,and 2017.In 2017,he sells the bonds for $3,800.Duncan excludes the bond interest,but must include a $400 capital gain in his 2017 gross income.Which of the following Concepts,Constructs,and/or Doctrines help in forming the basis for this treatment?
I.Capital Recovery Concept.
II.Legislative Grace Concept.
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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:

Wet Environments

Areas characterized by high moisture levels, which can significantly influence local ecosystems and geology.

Clastic Sedimentary Rocks

Clastic sedimentary rocks are formed from the accumulation and lithification of mechanical weathering debris, consisting mostly of fragments of older rocks.

Sociotechnical

Relating to the interaction between social and technical elements within an organization, focusing on the relationships between people and technology in work environments.

Cohesive

Characterized by unity and sticking together; forming a whole or working closely as a unified entity.