Carter Sold 100 Shares of Mitsui, Inc

question 47

Multiple Choice

Carter sold 100 shares of Mitsui, Inc. for $8,000 but he only recognized $2,000 as income because the original purchase price was $6,000. This is due to the

• A)Ability to Pay Concept.
• B)Administrative Convenience Concept.
• C)Arm's-Length Transaction Concept.
• D)Capital Recovery Concept.
• E)Business Purpose Concept.

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