Occasionally, Realized Gains Are Not Recognized for Tax Purposes

question 87

Multiple Choice

Occasionally, realized gains are not recognized for tax purposes. These situations occur because
I.certain gains are excluded due to legislative grace.
II.gains are deferred on certain types of property transactions where the wherewithal-to-pay the tax resulting from the transaction is lacking.
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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:

Neural Pathways

Networks of neurons in the brain that are involved in the transmission of information from one part of the brain to another.

Emotions

Complex psychological states that involve an interplay of physiological arousal, expressive behaviors, and conscious experience.

Reflexes

Automatic, involuntary responses to certain stimuli that serve protective roles, such as the knee-jerk reflex.

Chemical Messenger

Substances in the body such as hormones and neurotransmitters that transmit signals from one cell to another.