Match Each Statement with the Correct Term Below

question 97

Multiple Choice

Match each statement with the correct term below.
-Capital Recovery Concept

• A)Taxpayer reports income when received in cash or its equivalent and takes deductions as they are paid.
• B)A deduction taken in one year that is recovered in a later year is reported as income in the year of recovery to the extent that the deduction reduced taxable income.
• C)Taxpayer reports income as earned and deductions as incurred.
• D)The result of an arms-length transaction.
• E)Exclusions and deductions result from specific acts of Congress that must be strictly applied and interpreted.
• F)The taxability of a transaction is determined by the reality of the transaction rather than some contrived appearance.
• G)The reporting of an item of income or expense on a tax return
• H)No income is realized until the taxpayer's invested capital is recovered.
• I)All income received is taxable unless some specific provision of the tax law allows exclusion of the item.
• J)These taxpayers are not deemed to transact at arms-length.

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Definitions:

National Memorial For Peace

A monument dedicated to remembering and honoring peace, often associated with historical events or figures who have contributed significantly to the pursuit of peace.

Legacy Museum

An institution dedicated to understanding and teaching about the legacy of slavery, racial history, and its lasting impact on society.

Lynching

Practice, particularly widespread in the South between 1890 and 1940, in which persons (usually black) accused of a crime were murdered by mobs before standing trial. Lynchings often took place before large crowds, with law enforcement authorities not intervening.